Uber (UBER, $62.10) gets price target hikes from analysts

Uber Technologies   fourth-quarter earnings missed analysts’ expectations, on  pandemic-related drop in riders’ demand. But analysts boosted their one-year price targets as they expect better prospects.

For the fourth quarter. Uber experienced a narrower loss, as strength in its food-delivery business (+130% year-over-year) to a large extent offset a decline of -50% in its ride-hailing business.

Wedbush Securites analyst Dan Ives increased his one-year price target on Uber to $76 from $60. The analyst mentioned that the fourth quarter results were “a step in the right direction” as earnings before income, taxes, depreciation and amortization and gross bookings beat expectations. According to Ives, a rebound in ride sharing over the next year and “a clearer route to profitability” is likely to boost the stock. He has an outperform rating on the stock.

KeyBanc analyst Edward Yruma boosted his one-year price target to $75 from $63, noting that while pressure remains on the mobility aspect of Uber’s business, strong delivery and the acquisition of alcohol delivery service Drizly creates “room for further growth.”