Rosenblatt Initiates Travel and Mobility Coverage, Favoring Uber and Booking Holdings

Rosenblatt has initiated coverage of the online travel and mobility sector, expressing a clear preference for large, diversified platform companies while remaining on the sidelines for firms facing significant competitive or structural headwinds. The new analysis from the firm provides investors with a framework for navigating the evolving landscape of consumer transportation and travel.

Firm Backs Platform Leaders

In a note to clients, Rosenblatt analyst Scott Devitt assigned 'Buy' ratings to several industry leaders, citing durable growth prospects and defensible market positions. The firm's top picks include:

• Uber (UBER): Initiated at Buy with a $100 price target.
• DoorDash (DASH): Initiated at Buy with a $270 price target.
• Booking Holdings (BKNG): Initiated at Buy with a $245 price target.
• Airbnb (ABNB): Initiated at Buy with a $220 price target.

Devitt argued that recent weakness in Uber's shares, tied to headlines about autonomous vehicles, presents an opportunity for investors. "The dislocation has created an attractive entry point to a high-quality, durably compounding platform," the analyst wrote, viewing the AV debate as a longer-term concern rather than a near-term risk. For DoorDash, Rosenblatt described it as "the most defensible operator in mobility and delivery."

In the online travel space, the firm named Booking Holdings the best-positioned global agency, contending that the market is overstating the risk of disintermediation from artificial intelligence. Rosenblatt also noted that the financial overhang from Airbnb's investments in new business lines is beginning to lift as those initiatives show positive results.

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Cautious Stance on Select Peers

Conversely, Rosenblatt took a more cautious view on several other companies in the sector, initiating them with 'Neutral' ratings due to specific challenges.

• Expedia (EXPE): Initiated at Neutral with a $360 price target.
• Instacart (CART): Initiated at Neutral with a $55 price target.
• Lyft (LYFT): Initiated at Neutral with a $19 price target.

For Expedia, the firm cited concerns over slowing bookings growth, its concentration in the U.S. consumer market, and potential AI disintermediation risk. Rosenblatt flagged a "softening leadership position" for Instacart parent Maplebear and pointed to a "structural competitive gap" as a key challenge for Lyft.