Wall Street has been feeling upbeat about
Uber Technologies
ahead of the ride-hailing company’s third-quarter earnings report next week.
KeyBanc Capital Markets analysts led by Justin Patterson upgraded Uber (ticker: UBER) to Overweight from Sector Weight with a price target of $60. The analysts also lifted their earnings and revenue estimates for 2024 and 2025, and said they expect third-quarter results to be “largely in line.”
KeyBanc praised the company’s position as a category leader, and pointed to several revenue opportunities.
“Uber is positioned to benefit from the sector growth of retail media with its emerging advertising business, which is margin accretive,” analysts wrote. “Additionally, we continue to see opportunity for Uber to expand within its existing verticals into areas like hailables, shared rides, and grocery delivery.”
Oppenheimer analysts led by Jason Helfstein, who maintained their Outperform rating and $65 price target, also found a lot to like in a research note this week. They see an “attractive entry point” amid a recent stock decline and ahead of a potential inclusion in the
S&P 500
should Uber achieve trailing-12-months GAAP profitability, and noted consumer tailwinds.
Over the summer, Bernstein analyst Nikhil Devnani also weighed in on the index possibility, MarketWatch reported. “Changes to the index occur frequently, and stocks tend to outperform strongly in the 6-12 months leading up to S&P inclusion,” he noted. And indeed, coming into Friday’s trading session, Uber stock has soared 88% this year.
Last month, Seaport analyst Aaron Kessler initiated coverage of the stock at Buy with a $51 price target, writing that he anticipates “continued bookings momentum and solid Ebitda leverage.”
An overwhelming majority of analysts are bullish on the stock, with 96% rating it Buy, according to Factset.
Shares of Uber were rising 1.6% in premarket trading.
Write to Emily Dattilo at [email protected]
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