Uber Technologies Inc (NYSE:UBER) has earned a price target bump from analysts at the Bank of America (BofA) who now expect the stock to reach $73 per share up from their prior expectation of $68.
Shares of the ride-hailing and delivery app traded hands at about US$67 late morning on Tuesday.
Uber will hand down its fourth-quarter financial results on Wednesday, February 7, 2024, and the BofA analysts expect it to report bookings of $37.2 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.24 billion, above the consensus of $37.1 billion and $1.22 billion, respectively.
For 1Q, they see bookings and EBITDA outlook of $37.5 billion to $38.5 billion and $1.26 billion to $1.31 billion compared to Street estimates of $37.2 billion and $1.25 billion.
“While expectations are high, we are above Street for 2024 and see 1Q upside potential,” the analysts wrote in a note to clients.
The BofA analysts believe that after a strong 2023, the company is positioned to continue to profit inflection aided by strong driver supply.
They also see the introduction of high-margin ads, a stable competitive environment and new advertising services and partners as contributing to margin expansion in 2024.
“We see Uber as offering one of the best three to five-year growth profiles in the Internet sector, with potential for mid-to-high teens bookings growth and 30% EBITDA growth as margins increase from 3.5% of bookings toward 7%,” they wrote.
As such, the analysts also reiterated their ‘Buy’ rating on the stock.