Uber Technologies (UBER) has updated its outlook for the third and fourth quarter of 2021 after it reported positive adjusted EBITDA in July and August. At the time of writing, shares of the company were up 6.2% in Tuesday’s early trade.
The transportation networking company offers ride-hailing, food delivery, package delivery, couriers and freight transportation services. (See Uber stock chart on TipRanks)
Uber expects to report gross bookings between $22.8 billion and $23.2 billion in the third quarter, up from $22 billion to $24 billion expected earlier. Also, adjusted EBITDA is now anticipated to be between a loss of $25 million and a profit of $25 million. The company had earlier anticipated a loss of $100 million.
For the fourth quarter, the company now expects to deliver adjusted EBITDA between $0 and $100 million.
The CFO of Uber, Nelson Chai, said, “We expect to deliver sequential Adjusted EBITDA improvement in Q4, even as we continue to invest in our growth initiatives.”
Following the news, Wells Fargo analyst Brian Fitzgerald maintained a Buy rating on Uber with a price target of $78 (96% upside potential from current levels). Fitzgerald expects the company to report earnings per share of $0.61 for the third quarter of 2021.
The rest of the Street is bullish on the stock and has a Strong Buy consensus rating based on 23 Buys and 2 Holds. The average Uber price target of $68.52 implies upside potential of about 72.2% from current levels.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Uber is currently Positive, as the cumulative change in holdings across all 25 hedge funds that were active in the last quarter was an increase of 1.3 million shares.
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