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.”
UBER may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where UBER's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which provides a ride hailing services, develops applications for road transportation, navigation, ride sharing, and payment processing solutions.
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