Shares of Uber Technologies Inc (NYSE: UBER) rose sharply on Wednesday, after the company announced the share repurchase of up to $7 billion.
Last week, the ride-sharing giant announced its fourth-quarter results amid an exciting earnings season. Here are some key analyst takeaways from the company’s investor day.
Truist Securities analyst Youssef Squali maintained a Buy rating, while lifting the price target from $77 to $90.
Roth Capital Partners analyst Rohit Kulkarni reiterated a Buy rating, while raising the price target from $79 to $91.
BMO Capital Markets analyst Brian Pitz reaffirmed an Outperform rating, while lifting the price target from $82 to $92.
Goldman Sachs analyst Eric Sheridan maintained a Buy rating, while raising the price target from $81 to $87.
Needham analyst Bernie McTernan reiterated a Buy rating and price target of $90.
RBC Capital Markets analyst Brad Erickson reaffirmed an Outperform rating and price target of $85.
William Blair analyst Ralph Schackart maintained an Outperform rating on the stock.
Check out other analyst stock ratings.
Truist Securities: The investor day commentary was “incrementally positive,” with Uber guided to three-year gross bookings and adjusted EBITDA growth rates higher than the consensus expectations, Squali said.
The company announced a stock buyback program of $7 billion, “reflecting the growing underlying FCF generation of the model,” the analyst stated. “This outlook points to an increasingly healthy marketplace across both Mobility and Delivery, with improving unit economics and ample growth in users and in engagement still ahead, with benefits accruing disproportionately to the largest player,” he added.
Roth Capital Partners: Uber’s buyback authorization announcement was “surprisingly large,” Kulkarni said. “We see this as a sign of confidence in the company’s ability to predict profitable growth, generate significant cash flows, and control incremental dilution.”
“Uber mgmt. laid out a compelling investment case for Uber to become a “must own” Internet/Tech asset among growth investors as its marketplace network effects have hit scale benefits resulting in serial compounding,” the analyst further stated.
BMO Capital Markets: Uber’s Mobility business is “positioned for a 3-year CAGR of…
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