Analysts at Wedbush see a high likelihood of Uber Technologies Inc (NYSE:UBER) announcing a round of share buybacks after a confident fourth quarter.
Uber reported robust fourth-quarter results, exceeding consensus estimates with gross bookings of $37.6 billion (a 22.2% year-over-year increase) and adjusted EBITDA safely above estimates.
Growth was driven by an 80% increase in non-UberX mobility products and a $7 billion run rate in grocery/retail delivery bookings, showing a 40% year-over-year increase.
Uber aims to expand user frequency across global markets, driving Uber One adoption and making progress in new verticals.
With guidance for first-quarter 2024 bookings and adjusted EBITDA above Street estimates, Wedbush remains positive about Uber's growth trajectory and margin expansion.
As a result, Wedbush reiterated its outperform rating on Uber, raising the target price to $78 from $67.
“With healthy underlying growth and margin drivers in place, we believe Uber is well positioned heading into its investor day next week with the company likely to announce a share repurchase program and provide updated financial targets,” said analysts.