12:54 PM EST, 12/19/2024 (MT Newswires) -- Uber Technologies' ( UBER ) strong network liquidity and advanced logistics technology are "well positioned" to expand its market share in ride-hailing and online food delivery, Oppenheimer said in a report emailed Thursday.

Oppenheimer recognized Uber ( UBER ) as a "top large-cap pick" for next year, emphasizing the current market environment as a "buying opportunity," the report said.

In the short term, Uber ( UBER ) is expected to regain lost US mobility market share by adopting higher insurance costs a quarter before Lyft ( LYFT ) and offering more aggressive incentives, while in the longer term, Uber ( UBER ) will be the leading matching/logistics platform in a world of several Robotaxi providers due to lower cost to serve and higher utilization, Oppenheimer said.

Oppenheimer flagged challenges for Robotaxis, including high fleet costs, maintenance downtime, and infrastructure needs, raising doubts about optimistic cost assumptions. However, it believes Robotaxis could expand Uber's ( UBER ) US mobility market, according to the note.

Oppenheimer has an outperform rating on Uber ( UBER ) with a price target of $85.

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