Benchmark Co. analyst Daniel Kurnos has maintained their neutral stance on UBER stock, giving a Hold rating today.
Daniel Kurnos has given his Hold rating due to a combination of factors surrounding Uber Technologies. Despite the company’s positive outlook and strategic initiatives, there were some concerns that warranted a cautious approach. Uber’s recent earnings report showed a slight miss in gross bookings and revenue, particularly in the mobility segment, which raised concerns about potential slowdowns despite management’s reassurances. This miss, coupled with the fact that shares are not particularly cheap, suggests a need for careful observation.
Additionally, while Uber’s delivery segment showed promising growth and profitability, the overall market sentiment appears overly optimistic, creating a risk of volatility if future results do not meet expectations. The company’s strong 2Q guidance and strategic advantages, such as its focus on membership and cross-pollination, do provide a positive outlook. However, the crowded nature of the trade and the potential for unexpected challenges contribute to the Hold rating, as it reflects a balanced view of both the opportunities and risks involved.
Kurnos covers the Communication Services sector, focusing on stocks such as Magnite, Nexstar Media Group, and TEGNA. According to TipRanks, Kurnos has an average return of 0.4% and a 44.23% success rate on recommended stocks.
In another report released today, Wedbush also downgraded the stock to a Hold with a $85.00 price target.