Why Wedbush Is Cutting The Price Target On Uber Technologies

Although Uber Technologies Inc’s UBER Investor Day highlighted growth drivers, the company’s 2024 adjusted EBITDA target came in short of consensus, according to Wedbush.

The Uber Technologies Analyst: Ygal Arounian reiterated an Outperform rating for Uber Technologies while reducing the price target from $57 to $48.

The Uber Technologies Thesis: While management’s 2024 targets signal strong growth and significantly improving profitability, the midpoint of gross bookings at $170 billion was in-line with consensus and adjusted EBITDA missed the consensus estimate of $5.7 billion, Arounian said in the note.

“While already a ubiquitous product in the U.S. and across much of the world, we still see a lot of TAM attainable in Mobility, and Delivery growth in restaurant proving sustainable post-Covid and early in other categories like grocery,” the analyst wrote.

“Uber for Business and advertising also creates a greater opportunity for growth,” Arounian mentioned. “The public policy and regulatory situation will remain dynamic for years to come, but we continue to expect progress with a sustained move towards compromised approaches that will pay drivers better but still allow for flexibility,” he added.

UBER Price Action: Shares of Uber Technologies had risen by 1.08% to $35.67 at the time of publication Monday.

Photo: Courtesy Uber