Uber's 'Kelce-Like Quarter:' Wedbush's Ives Boosts Price Target, Lauds One Of Tech World's 'Best Turnarounds Ever' While 'Little Brother Lyft Just Watches'

Wedbush analysts maintained their bullish stance on Uber Technologies Inc UBER following the ride-hailing company’s robust fourth-quarter performance and optimistic earnings forecast for the first quarter of 2024.

Analyst’s Positive Outlook: Wedbush has upped its price target on Uber to $78 from $67 while reaffirming its “outperform” rating.

What Analysts Say: In a note released on Wednesday, the analysts highlighted Uber’s consistent margin expansion, backed by a track record of surpassing EBITDA guidance over multiple quarters. They underscored the management’s ongoing emphasis on enhancing user frequency globally and driving Uber One adoption.

“With healthy underlying growth and margin drivers in place, we believe Uber is well positioned heading into its investor day next week, where the company is expected to announce a share repurchase program and provide updated financial targets,” the analysts commented.

Uber’s Performance: Uber reported fourth-quarter adjusted EBITDA of $1.3 billion and total revenue of $9.9 billion, both surpassing consensus estimates.

Wedbush analyst Dan Ives remarked in a post on X that the company delivered another “Kelce-like” quarter, alluding to the performance of Kansas City Chiefs tight end Travis Kelce, who has contributed to the team’s journey to this weekend’s Super Bowl.

“One of the best turnarounds ever in the tech world by Dara (Khosrowshahi) and the team the last few years and train not slowing down. Gaining more ridesharing market share and expanding its consumer tentacles while little brother Lyft LYFT just watches,” Ives remarked.

For the first quarter of 2024, Uber anticipates booking growth in the range of 18-22% year-on-year and adjusted EBITDA in the range of $1.26 billion to $1.34 billion, once again surpassing street estimates.

Wedbush adjusted its estimates accordingly, projecting the company to achieve an adjusted EBITDA of $1.3 billion in the first quarter and $6 billion for the entire year. The analysts also revised their revenue estimates upward, driven by the robust pace of gross bookings growth.

Price Action: Uber shares closed up 0.3% at $70.65 on Wednesday, but were down 0.48% in Thursday’s premarket, according to data from Benzinga Pro.

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