(News Bulletin 247) – Jefferies maintains its Buy recommendation and its price target of $50 on Uber shares.

Yesterday’s passage by the Minnesota Senate of a bill to establish minimum pay rates and other benefits for Rideshare drivers is of concern to the analyst: ‘We estimate that driver costs in the Minnesota would increase by about 45% per trip, which would force Uber to raise those fares or leave the state.’

Though Minnesota only accounts for 0.5%/2.0% of bookings for Uber, passage of the bill, which still requires Minnesota governor’s approval, could ’embellish lawmakers in other municipalities’ , believes Jefferies.

“We believe Uber will seek to offset the impact of increased driver revenues in Minnesota by making operational adjustments and increasing fares, which would negatively impact consumer demand,” continued the statement. analyst.

Copyright (c) 2023 News Bulletin 247. All rights reserved.