Analysts have been impressed by Uber’s first quarter results, with brokers Wedbush and Canaccord each bumping up their price target on the stock.
The ride-sharing company’s 1Q revenue of $8.8 billion was ahead of Wall Street’s forecast of $8.7 billion, its loss per share of $0.08 matched expectations, and its gross bookings grew 19% year-over-year to $31.4 billion.
Uber shares were up 4.3% at US$38.10 at noon on Wednesday.
Analysts at Wedbush highlighted that Uber was outperforming in the right areas, upping their price target from $40 to $44 while reiterating their ‘Outperform’ rating.
“Uber One now accounts for 27% of gross bookings suggesting a growing loyalty halo around the business,” they wrote in a note to clients.
“Strength in trips while utilizing fewer incentives highlights the very strong competitive position of Uber’s multiservice platform.”
They highlighted that the company’s above-expected guidance for gross bookings pointed to the strength of Uber’s business model post-pandemic.
“Uber is confident in sustaining its gross bookings growth while the company continues to benefit from post-pandemic trends continuing to hold globally as major cities activity is at pre-pandemic trends with Uber poised to benefit throughout the rest of 2023,” they wrote.
“In a nutshell, this was a major step in the right direction for Uber as [CEO] Dara & Co sound confident the company will continue to expand aggressively while growing profitability at an impressive rate,” they concluded.
Canaccord analysts also raised their price target on the stock from $45 to $47 and reaffirmed their ‘Buy’ rating.
“Uber shares are reacting favorably to the solid quarter and forward guidance, and we continue to see a reasonable case for multiple expansion over time given category strength in mobility and delivery, ongoing product innovation, and expanding margins,” they wrote.
Analysts at Oppenheimer said Uber remains its top large-cap pick, noting improvement in consumer/driver engagement accelerating trip growth and delivery surprisingly growing throughout the quarter.
Oppenheimer’s analysts awarded the stock an ‘Outperform’ rating and a $55 price target.
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