Uber Gets 9% Price Target Boost From Wedbush After Investor Day, Ross Gerber Calls It 'Fire Breathing Dragon'

Shares of Uber Technologies Inc UBER jumped 14.7% on Wednesday, closing at $79.15, following the company’s investor day. Wedbush analysts remain bullish and increased their 12-month price target to $85.

Analyst’s Positive Outlook: Wedbush boosted its Uber price target from $78 to $85, reiterating its “outperform” rating.

What Analysts Say: During investor day, Uber’s three-year outlook surpassed analyst expectations. The company anticipates mid-to-high teens CAGR growth in gross bookings and 90%+ annual free cash flow generation over the next three years.

“…we come away from the event increasingly constructive on the long-term growth trajectory of the business,” the analysts said in a note. 

They added that the $7 billion share buyback program announced by management positions the company well for shareholder returns.

The analysts highlighted Uber’s consistent performance and market dominance. “While margins turned positive in 2021, the company has met or exceeded gross bookings and adj. EBITDA expectations for eight straight quarters,” they said.

“We are encouraged by the strength of management’s 3-year outlook and continue to view Uber as our best idea within the mobility vertical,” they concluded.

Meanwhile, Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management, and an Uber investor, declared the company a “fire-breathing dragon” on Friday. 

Price Action: Uber shares have surged 118.5% in the past year, according to data from Benzinga Pro.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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