It also hiked the price target on the stock to US$50 from US$45 and repeated an 'outperform' rating.
It comes ahead of Uber's fourth-quarter results, which are due after the bell on Thursday (February 6).
Wedbush analyst Dan Ives expects the group to beat Wall Street estimates and to provide better-than-expected guidance for 2020.
"Since its IPO, shares of Uber have been a nightmare for investors," he noted, but said things were now starting to turn around.
Uber stock is today up more than 40% from its US$25.58 low.
Ives reckons the sale of Uber's Indian food delivery business showed a new dedication to achieving profitability and believes the coming months will see Uber attempt to shape the Uber Eats business into an important part of the 'flywheel' rather than the overhang it represents currently on the stock.
Uber shares on Monday added 1.41% to US$36.80 in New York.