12:00 PM EDT, 05/06/2024 (MT Newswires) -- Uber Technologies ( UBER ) faces an "attractive entry point" as its growth adjusted multiple trails Lyft ( LYFT ) and Instacart (CART), Morgan Stanley said in a report emailed Monday.

Uber ( UBER ) trades below the two rivals on a free cash flow to growth adjusted basis, and "we think this is unwarranted given Uber's ( UBER ) industry leading scale, growth and profitability," Morgan Stanley said. "This pullback has come as investors feel less confident in upward revisions, while fears around Robotaxi and autonomous driving disruption have reemerged," the report said.

Uber's ( UBER ) "multiproduct rides and cross-platform strategies" are set to drive profitable growth, Morgan Stanley said.

"We see a notable opportunity for Uber Eats in the suburbs," where "we believe the company has made progress improving supply," the report said.

Morgan Stanley reiterated its overweight rating on Uber's ( UBER ) stock and kept the price target at $90. The firm maintained its equal-weight rating on Lyft ( LYFT ) and raised the price target to $13 from $12. Instacart price target was boosted to $40 from $28 with the equal-weight rating maintained.

Uber ( UBER ) shares rose 4.1% in recent trading Monday. Lyft ( LYFT ) rose 1.8%, and Instacart gained 1.1%.

Price: 72.08, Change: +2.85, Percent Change: +4.12