Investment bank Argus raised Uber's target price to $69 and maintained its “buy” rating on the stock. Investment bank Oppenheimer also raised its target price for Uber to $75.
The Zhitong Finance app learned that the S&P Dow Jones Index Company announced last week that Uber (UBER.US) will be included in the S&P 500 Index, and the adjustments will take effect before the market opens on December 18. Boosted by this news, Uber's US stock rose more than 4% before the market on Monday as of press release.
Investment bank Argus raised Uber's target price to $69 and maintained its “buy” rating on the stock. The bank believes that Uber's recent rise in profitability reflects continued cost cuts and higher total order volume. Among them, total mobile business orders increased 31% year over year, and total delivery business orders increased 18% year over year.
Looking ahead, Argus expects Uber's 2024 revenue to reach 47.1 billion US dollars and earnings per share to reach 1.54 US dollars. This forecast is higher than the market's current general expectations. The bank also said, “We've noticed that Uber has a huge size and scale advantage over Lyft. We believe Uber has gone through years of operating losses. We also expect the company to begin repurchasing shares.”
In addition, investment bank Oppenheimer also raised Uber's target price to $75. The bank said, “After being included in the S&P 500, we expect Uber to shift to growth and stock buybacks, which should enhance investor confidence in the stock's growth and returns in 2024.”