Uber Stock Could Nearly Double As Pandemic Recovery Continues, Needham Says

  • Needham analyst Bernie McTernan reiterated a Buy on Uber Technologies, Inc UBER with a price target of $52.
  • In his 12th Mobility Tracker, wait times and pricing increased over the past month but held mainly onto the significant improvements that started in July. 
  • Lyft, Inc LYFT has shown some positive signals, taking back some lost share in wait times, although UBER still leads in his head-to-head comparison, he said.
  • NYC has been the most robust performing city over the past six weeks, McTernan noted. 
  • The analyst observed that the demand indicators have seemingly stabilized over the past few months. 
  • McTernan will look for lower gas prices and their impact on supply and demand, with the national average below $4.
  • Strategically, Uber will benefit from reopening the economy in Mobility. 
  • Both Uber and Lyft talked about the return of profitable growth and its positive impact on their respective consolidated margins. 
  • In Delivery, the analyst thinks Uber can grow its share of bookings by expanding into new verticals with a buy-over-build strategy that allows for quick penetration. 
  • McTernan foresees the company's Mobility business benefiting from its Uber Pass subscription. 
  • The analyst also thinks the company's subscriptions would benefit from a more aggressive pursuit of acquisitions.
  • Price Action: UBER shares traded lower by 3.45% at $28.01 on the last check Monday.
  • Photo via Wikimedia Commons
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