Citigroup Upgrades Uber On Higher Revenue Projections

Citigroup upgraded Uber Technologies Inc UBER Monday, citing the potential for the stock to rise on better third quarter earnings.

The Analyst

Itay Michaeli upgraded Uber from Neutral to Buy and maintained a $45 price target.

The Thesis

Second-half revenue for the ridesharing pioneer is expected to accelerate, Michaeli said in the upgrade note, adding that the stock has been hampered by worries about a new California law that could turn gig workers into employees there — and by the lockup period from the company’s May IPO. (See the analyst's track record here.)

“While these overhangs will likely persist, we believe Q3 results could swing sentiment more favorable, as H2 revenue is expected to accelerate and as high level (California law) scenarios now appear better understood.”

Uber’s relative position on the potential for the move to autonomous vehicles has improved, and there may be potential profit opportunities from next-generation vehicles such as electric cars, according to Citi.

Price Action

Uber stock was was up 2.26% at $30.34 at the time of publication.

Related Links:

Uber And Lyft Hold Their Breath In The Wake Of California Bill

Lyft, Uber Regulatory Hurdles Keep This Analyst On The Sidelines For Now

Photo courtesy of Uber. 

Posted In: CitigroupItay Michaeliride-hailingAnalyst ColorUpgradesAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.