Needham analyst Bernie McTernan has maintained their bullish stance on UBER stock, giving a Buy rating today.
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Bernie McTernan has given his Buy rating due to a combination of factors that indicate a positive outlook for Uber Technologies. One of the key reasons is the slight increase in pricing observed for Uber, which, along with strong demand indicators, enhances confidence in the company’s quarterly estimates. Although the pricing advantage of competitors like Lyft is noted, Uber’s advantage in terms of wait times is currently at a peak.
Additionally, McTernan has increased the price target for Uber based on a higher target multiple, albeit at a discount to its current trading level. The introduction of new technology providers into the rideshare ecosystem, such as May Mobility, is seen as a positive development. However, potential expansions by competitors like Tesla and Waymo could impact Uber’s market multiple. Overall, assuming consumer demand remains robust, Uber’s ability to grow its bookings in the near term is not in question.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $110.00 price target.