An analyst at HSBC says it's time to buy Uber and Lyft

An badyst at the sales group sees an opportunity at Uber Technologies Inc. and Lyft Inc. in the face of investor pessimism about the values ​​of these early-stage companies.

"The price is right for the launch," he said. Masha Kahn, from HSBC, in a comment, and raised the recommendation inviting both companies to "buy" from "keep". Uber shares have lost more than 25% from the value of its initial public offering in May to $ 45 per share, while Lyft fell 16% over the same period. What is at stake are big losses, concerns about the growth and impact of California's labor regulations.

These concerns could already be deducted from the price, although the expiry of the ban on the sale of shares on November 6 may also affect Uber's stock, Kahn said. Kahn has reduced the Uber indicative price from 49 USD to 44 USD and that of Lyft from 67 USD to 62 USD.

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The risk / reward ratio is attractive for both companies, he said. Given current depressed valuations, the Uber Eats food distribution platform can offer Uber investors a "free" option within the San Francisco-based company. Meanwhile, Lyft quotes only once the value of the company compared to the gross reserves of the next 12 months.

"The business ofand transport from Uber and Lyft can achieve profitabilityif both return to sales and marketing and take advantage of the fixed cost base, "Kahn wrote. Both stocks appreciated less than 1% before market opening.