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
Latest Ratings for UBER
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Loop Capital | Maintains | Buy | |
Mar 2022 | Deutsche Bank | Initiates Coverage On | Buy | |
Feb 2022 | Wedbush | Maintains | Outperform |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: ride share Wedbush Ygal ArounianAnalyst Color Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga