Uber and Lyft Stocks Upgraded on Profit Potential

LYFT stock is testing its 20-day moving average

Sep 16, 2019 at 11:00 AM
facebook twitter linkedin


Uber Technologies Inc (NYSE:UBER) and LYFT Inc (NASDAQ:LYFT) are both trading higher today following bullish analyst attention. HSBC released a note upgrading each stock to "buy," saying sentiment has turned bearish on UBER and LYFT shares, especially due to last quarter's poorly received numbers. The brokerage firm also said it was possible for the companies to reach profitability if they properly cut costs.

UBER was last seen up 5.8% at $34.59, pushing for its best close since mid-August. HSBC set a $44 price target on the stock, which on Friday found support at the 20-day moving average. Most other analysts are also bullish on the ride-hailing platform, with 21 of 26 handing out "buy" or "strong buy" recommendations.

Call options are already popular this morning, trading at two times the pace expected. Most popular is the September 35 call, while new positions are opening at the September 36 call. It's possible traders are buying the positions to try and profit on more upside in the security by Friday's close, when the contracts expire.

LYFT, meanwhile, is 5.7% higher at $48.73, testing its 20-day moving average. The brokerage firm set a $62 price target on the equity, which is actually a decent bit below the average analyst price target of $73.06. LYFT's call options are also trading at a hot rate right now, with new positions opening at the weekly 9/27 48.50-strike call.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners