Why Wedbush Is Cutting The Price Target On Uber Technologies

Although Uber Technologies Inc’s (NYSE: UBER) Investor Day highlighted growth drivers, the company’s 2024 adjusted EBITDA target came in short of consensus, according to Wedbush.

The Uber Technologies Analyst: Ygal Arounian reiterated an Outperform rating for Uber Technologies while reducing the price target from $57 to $48.

The Uber Technologies Thesis: While management’s 2024 targets signal strong growth and significantly improving profitability, the midpoint of gross bookings at $170 billion was in-line with consensus and adjusted EBITDA missed the consensus estimate of $5.7 billion, Arounian said in the note.

“While already a ubiquitous product in the U.S. and across much of the world, we still see a lot of TAM attainable in Mobility, and Delivery growth in restaurant proving sustainable post-Covid and early in other categories like grocery,” the analyst wrote.

“Uber for Business and advertising also creates a greater opportunity for growth,” Arounian mentioned. “The public policy and regulatory situation will remain dynamic for years to come, but we continue to expect progress with a sustained move towards compromised approaches that will pay drivers better but still allow for flexibility,” he added.

UBER Price Action: Shares of Uber Technologies had risen by 1.08% to $35.67 at the time of publication Monday.

Photo: Courtesy Uber