Uber Technologies, Inc. (NYSE: UBER) delighted its investors on Tuesday as its share price jumped over 4%. This surge came after an analyst declared it as his top pick in its category for 2023.
What Happens? On July 18th, Rohit Kulkarni, an analyst at Roth MKM, raised his price target for Uber, setting it at $59 per share, a notable increase from the previous target of $46. Alongside this update, he maintained his buy recommendation.
Kulkarni’s optimistic outlook is based on his new profitability estimates for 2023 and 2024. He predicts a 15% increase in both earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) for these two years.
Furthermore, Kulkarni expressed enthusiasm for Uber’s growing free cash flow. He also mentioned additional factors that could contribute to its value, such as stock buybacks and potential inclusion in the benchmark S&P 500 index.
Despite Uber’s share price already soaring over 90% in 2023, Kulkarni reiterated his belief that it remains the top internet stock in the market today.
Can that rally continue? The upcoming second-quarter earnings release will be a crucial factor in determining whether the rally can continue. The earnings will be discussed in a conference call scheduled for August 1 before the market opens.
Analysts hold high expectations for Uber, anticipating a significant reduction in net losses, potentially reaching $0.01 per share compared to a deficit of $1.33 per share in the previous year. In addition, they anticipate a notable 16% year-over-year increase in revenue, with expectations set at $9.34 billion.