Bank of America Merrill Lynch initiates coverage on Uber at 'buy'

BoA said Uber had the "top platform" in a big industry, branding it "a transformational company" that should benefit from shifts to the sharing economy, time-saving services and a more efficient marketplace evolution.

The analysts based its thesis on Uber's existence within an attractive sector, with just 1% penetration of the total addressable market and its signalling of a more rational environment, which it expects to lead to a reacceleration of adjusted net revenue growth, among others things.

BoA, which issued the firm with a $53 price target, said the key catalyst for the stock in 2019 will be accelerating that ANR growth and improving contribution margins, which its analysts believe would support optimism on the group's long-term model.

However, with losses expected through 2022, BoA acknowledged this was "a long-term call" subject to added volatility as existing and new competitors, as well as regulators, continue to shape the nascent industry.