Melius downgraded Uber Technologies (NYSE: UBER) from Hold to Sell and assigned a $73 price target. Shares fell more than 1% intraday on Monday following the downgrade.
The firm said Uber remained the clear global leader in ride-sharing and delivery, but argued that this position also exposed the company to the greatest risk from intensifying competition. Melius noted that Uber had sought to position itself as a demand aggregator for emerging autonomous vehicle players through partnerships and investments as new technologies scaled.
However, the analyst said competition from autonomous vehicles was expected to increase meaningfully in 2026 and beyond, potentially eroding returns whether Uber partnered with new entrants or competed against them directly. While Uber’s valuation appeared inexpensive on the surface, Melius argued that it implicitly assumed steady-state growth with little impact from competitive threats.
The firm cautioned that if growth moderated, or if companies such as Waymo or Tesla announced further standalone expansion in the U.S. market, downside risks could materialize that were not fully reflected in current valuations.
