The Bull Case For Car-Sharing Platform Getaround: Why This Analyst Sees 194.2% Upside Potential

It has been a tough year for ride-sharing stocks. 

Uber Technologies Inc (NYSE: UBER) is down 43.27% year to date, while LYFT Inc (NYSE: LYFT) is down 75.9% year-to-date against the benchmark S&P 500 (NYSE: SPY)'s 19.66% dropo. 

The situation is even worse for Getaround Inc (NYSE: GETR), which went public via SPAC in early December.

Shares of Getaround have shed 94.81% of their value since the Dec. 9 IPO — but that could represent a steep discount, according to analysts at Piper Sandler who initiated coverage on the stock with an Overweight rating.

Getaround has an addressable market of $100 billion, according to the analyst firm. 

The Getaround Analyst: Alexander E. Potter initiated Getaround with an Overweight rating and $1.50 price target, implying upside potential of 194.2%. 
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“We think Getaround's car sharing platform is well-suited to an environment characterized by unaffordable cars, cash-strapped consumers, and congested roads,” Potter said in a Thursday note. 

The analyst continued, “the company's digital model addresses the friction involved in traditional vehicle rental by facilitating instantaneous, contact-free transactions. This model has enabled GETR to become the 2nd largest peer-to-peer vehicle sharing company, with 1.7M guests and 72k active vehicles.”

Getaround went public in December after merging with blank-check company InterPrivate II Acquisition Corp. That same day, share prices of Getaround fell more than 65%, owing to the unfavorable investment climate for both SPACs and ride-sharing businesses.

While Piper Sandler is bullish on Getaround’s potential, the investment firm said the company is going to have to raise additional capital within two years — and faces risks from poor public sentiment surrounding the peer-to-peer car sharing marketplace. 

“In the meantime, the onus is on management to demonstrate cost discipline, revenue growth, and opex leverage,” Potter wrote.

GETR Price Action: Shares of Getaround Inc plunged 9.02% to 50 cents Thursday, according to Benzinga Pro.

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