Uber's Mobility Business Drives Its Recovery Says BofA

Speaking at an investor conference, Uber Technologies Inc’s UBER CFO Nelson Chai provided more data into mobility recovery, according to BofA Securities.

The Uber Technologies Analyst: Justin Post maintained a Buy rating for Uber Technologies, with a price target of $71.

The Uber Technologies Thesis: Chai indicated that while airport trips and late-night “party hours” trips remained impacted, work commute trips in cities like New York and Sao Paulo had started to lead the recovery, Post said in the note.

The company is also benefiting from “a substitution effect of commuters choosing Uber over public transportation,” he noted.

“Mobility had 15% M/M growth in average daily bookings in U.S. and Canada in February, plus a 12% improvement in the first week of March compared to February,” the analyst wrote.

Post further added, “While recovery is not in every geography, with easy March comps, we think 1Q could be trending toward Mobility down close to 40%, ahead of our down 45% estimate.”

Uber's CFO also reiterated the goal of achieving breakeven EBITDA profitability in the second half of 2021, Post said.

UBER Price Action: Shares of Uber Technologies had risen by 3.19% to $57.01 at the time of publication Wednesday.

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(Photo: Uber)