HyreCar Picks Up A New Bull After Sell-Off

Since its June market debut, HyreCar Inc (NASDAQ: HYRE) has steadily tumbled 54 percent. Now it’s got nowhere to go but up, according to Taglich Brothers. 

The Analyst 

Analyst Howard Halpern initiated coverage of HyreCar with a Speculative Buy rating and $4 price target.

The Thesis

HyreCar’s model exploits the boom in ride-hailing services by connecting owners of unused vehicles with carless Uber and Lyft drivers.

Given its position in the “mobility as a service” industry, the firm is poised to profit from 31.9-percent growth in sector revenue, Halpern said in the Tuesday initiation note. (See his track record here.) 

U.S. earnings are expected to rise from $39 billion in 2017 to $358 billion in 2025, and the ridesharing segment is projected to expand global revenue 16.5 percent annually, from $59.6 billion in 2018 to $148.7 billion in 2024, the analyst said. 

“In the long term, revenue growth should be supported by drivers seeking qualified vehicles,” Halpern said. “In a September 2018 presentation, HYRE anticipates a 13-percent market share of an estimated 4.5 million Uber and Lyft drivers in 2023.”

Recently announced partnerships with Shift Technology and TIKD are seen to bolster the platform.

“HyreCar's valuation is likely to move toward the sector averages as investors see consistent quarterly sales growth, growth in average active daily vehicle rentals, as well as the narrowing of operating losses,” the analyst said. 

Halpern anticipates a 2018 net loss of $1.35 per share, with an increase in average active daily rentals tripling revenue.

Price Action

HyreCar shares were down 0.74 percent at $2.28 at the time of publication Wednesday.

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Photo courtesy of HyreCar.