Uber (NYSE: UBER) Price Target Raised 13.2% by Analyst Boone

JMP Securities's Andrew Boone raised their price target on Uber (NYSE: UBER) by 13.2% from $76 to $86 on 2024/02/16. The analyst maintained their Buy rating on the stock.

Boone attributed the price target increase to Uber's recent Investor Update event held on February 14, 2024. The analyst highlighted management's introduction of new three-year guidance, with bookings and EBITDA compounding at high-teens to 20% growth and high 30% to 40% growth rates, respectively. Additionally, management indicated an expectation to convert over 90% of EBITDA to free cash flow, signaling a positive outlook for the company.

"With competition broadly remaining rational and Uber benefiting from its unique platform structure, this is clearly a high-quality business that is compounding growth," Boone concluded.

Uber Technologies recently reported strong financial results for Q4 2023, surpassing expectations. The company posted an EPS of $0.66, beating the Zacks Consensus Estimate and showing significant growth compared to the previous year. Revenue for the quarter also exceeded estimates, reaching $9.94 billion. Additionally, Uber reported impressive figures for FY 2023, with notable growth in EPS, revenue, gross bookings, and adjusted EBITDA.

Looking ahead, Uber's management provided guidance for Q1 2024, anticipating gross bookings of $37 billion to $38.5 billion and adjusted EBITDA of $1.26 billion to $1.34 billion. CEO Dara Khosrowshahi expressed confidence in the company's performance, stating that 2023 marked an inflection point for Uber.

Citigroup's Ronald Josey also issued an update on Uber on February 16, raising the price target to $91 and maintaining a Strong Buy rating on the stock. Notably, all top-rated analysts currently view Uber as a Strong Buy or Buy, with no recommendations to sell or hold the stock.

Analysts project that Uber's upcoming year will deliver an EPS of $1.32, representing a significant year-over-year increase of 42.1%. Since Uber's latest quarterly report on February 7, the stock price has risen by 11%, outperforming the S&P 500.

JMP Securities analyst Andrew Boone, who ranks in the top 5% of Wall Street analysts, specializes in the Communication Services and Technology sectors, among others. With an impressive average return and win rate, Boone's endorsement of Uber reflects positive sentiment towards the company's future prospects.

Uber Technologies, Inc. operates technology applications globally, connecting consumers with ride services and food delivery providers. The company's diverse segments, including Rides, Eats, Freight, and Advanced Technologies Group, cater to different aspects of transportation and logistics, positioning Uber as a key player in the evolving tech-driven economy.

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