Needham analyst Brad Erickson raised his target on Uber Technologies to $60 (23.9% upside potential) from $50, citing the ride-hailing company’s “conservative” mid-2021 delivery profit target. Erickson maintained a Buy rating on the stock.
In a note to investors, Erickson said “We were particularly encouraged by the retention commentary on newly acquired customers, generally conservative/rational assumptions in the mid-’21 profitability target and additional organic improvements being pursued, like batching and other end-market adjacencies.”
The analyst added “We think there remains multiple expansion potential as investors better appreciate the not-yet-blossoming delivery business, even excluding Mobility’s slower-than-expected rebound.” (See UBER stock analysis on TipRanks).
Earlier this month, TechCrunch reported that Uber (UBER) is in talks with Aurora Innovation to offload its self-driving unit – Uber Advanced Technologies Group (UATG). According to the the report Uber’s UATG business is valued at $7.25 billion.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 19 Buys and 2 Holds. The average price target stands at $50.85 implying upside potential of about 5% to current levels. Shares have jumped over 62.8% year-to-date.
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