Uber Technologies UBER has been granted a new license to operate in London after a judge upheld the ride-hailing company’s appeal against Transport for London.
The Uber Analyst: BofA Securities analyst Justin Post maintains a Buy rating on Uber with a $44 price target.
The Uber Takeaways: Uber secured an 18-month operating license in London, and it carries 21 requirements and conditions — up from 14 — that mostly surround driver ID photo verification and insurance issues, Post said in a Monday note.
Other rideshare companies in London — Bolt and Ola — recently received 18-month licenses, so it would have been surprising for Uber to be denied, especially given the advanced features, the analyst said.
“London is likely a top-three market for Uber in terms of gross bookings, with 45,000 drivers and 3.5 million users in the city,” he said.
The win in London is a clear positive for Uber, and the 18-month term is not necessarily a negative versus a five-year license, Post said. The shorter license has become more common for all London competitors, the analyst said.
Uber still faces regulatory uncertainty in the U.K., as another driver classification lawsuit could be decided by the U.K. Supreme Court in October, according to BofA.
UBER Price Action: Uber shares were trading down by 1.97% to $34.86 at last check Tuesday. The stock has a 52-week high of $41.86 and a 52-week low of $13.71.
Photo courtesy of Uber.
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