BofA says strategic rationale of Uber Blacklane acquisition compelling

BofA reiterated a Buy rating and $103 price target on Uber (UBER) shares following the company’s acquisition of Blacklane. BofA called the rationale behind the deal compelling. Corporate and high-income travelers are prioritizing reliability and predictability for mobility services, particularly for airport transfers and business meetings, and can be less price sensitive, the firm told investors in a research note. BofA added that growth in premium services should support higher margins and help diversify Uber’s revenue base.