Barclays increased the price target on Uber Technologies’ stock to $43 (30.7% upside potential) from $39 and reiterated a Buy rating amid expectations of a recovery in its delivery and mobility businesses post 2Q results.
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Barclays analyst Ross Sandler wrote in a note on Friday that Uber (UBER) “Delivery continues to stand out and management provided some new country-level stats which give confidence that Mobility can recover to pre-Covid-19 levels.” Sandler believes that “Uber will come out of the current slowdown in much better shape with higher take rates, profit margins, and a “strong and balanced” position in both Delivery and Mobility.”
On August 6, Uber reported better-than-expected top-line results for 2Q as revenues of $2.24 billion beat analysts’ expectations of $2.18 billion. The company’s loss per share of $0.80 was also narrower than the Street estimates of $0.86.
On August 7, Mizuho analyst James Lee raised the price target on Uber to $42 (27.7% upside potential) from $40 and maintained a Buy rating. Lee noted that the company’s online delivery business, Uber Eats “outperformed due to home confinement.”
Overall, UBER has a Strong Buy analyst consensus. The average price target of $42.29 implies an upside potential of about 29% to current levels. (See UBER stock analysis on TipRanks).
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