Market Overview

Citigroup Upgrades Uber On Higher Revenue Projections

Share:
Citigroup Upgrades Uber On Higher Revenue Projections

Citigroup upgraded Uber Technologies Inc (NYSE: 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. 

Latest Ratings for UBER

DateFirmActionFromTo
Oct 2019MaintainsBuy
Oct 2019UpgradesNeutralBuy
Oct 2019Initiates Coverage OnNeutral

View More Analyst Ratings for UBER
View the Latest Analyst Ratings

Posted-In: Citigroup Itay Michaeli ride-hailingAnalyst Color Upgrades Analyst Ratings Best of Benzinga

 

Related Articles (UBER)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
BYNDWells FargoInitiates Coverage On125.0
DDOGJP MorganInitiates Coverage On45.0
SBRABank of AmericaReinstates
DDOGStifel NicolausInitiates Coverage On40.0
SNHBank of AmericaInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

What Traders Should Watch For This Week As The WeTrader Paper Trading Competition Kicks Off

Gotham Green Partners Leads $16M Investment Round In Viola