Wedbush downgrades Uber to Neutral on lack of catalysts

Wedbush downgraded Uber (UBER) to Neutral from Outperform with a price target of $85, up from $80. The company reported “mixed” Q1 results with “healthy guidance” for Q2, the analyst tells investors in a research note. The firm points out Uber shares have appreciated considerably over the past year. However, the magnitude of the company’s earnings beats has contracted meaningfully as its performance has caught up to investor expectations, Wedbush contends. The firm believes the business is now well understood and faces a lack of clear catalysts in the near term, which will limit upside to expectations and curb further multiple expansion.