Uber Technologies (UBER) shares surged over 4% following an analyst upgrade from Roth MKM, which raised its price target to $59 from $46. Rohit Kulkarni, the analyst, reaffirmed his buy rating, citing improved profitability estimates for 2023 and 2024. His revised forecasts include a 15% increase in EBITDA and earnings per share, bolstered by rising free cash flow and potential catalysts like stock buybacks and inclusion in the S&P 500.
This upgrade is significant as it comes amid a strong year for Uber, with shares up over 90% in 2023. The market is now focused on the upcoming second-quarter earnings report, where analysts expect a substantial reduction in net loss and a 16% year-over-year revenue increase to $9.34 billion.
For market professionals, the key takeaway is that Uber’s strong performance and positive analyst sentiment could position it favorably for continued growth, making it a stock to watch ahead of its earnings release.
Source: fool.com