This Ridesharing Stock May Have Another 15% of Upside
Keep an eye on shares of Uber (SYM:UBER).
After bouncing from a recent low of about $56, the stock is now up to $70.54 and could head even higher. In fact, according to The Zephirin Group, it could head about 15% higher.
Helping, UBER just said gross bookings in the second quarter were up 19% year over year, topping estimates for $39.63 billion. Since that report, UBER has rallied about 18%, but according to The Zephirin Group, the market still undervaluing the stock.
The firm also reiterated its buy rating on the stock and expects “shares to outperform the &P 500 and peers this year,” as quoted by Barron’s. The firm also raised its price target on the UBER stock to $80 from $75.
Uber’s second quarter EPS of 47 cents also beat by 16 cents. Revenue of $10.7 billion, up about 16% year over year, beat by $120 million.
Moving forward, the company is calling for gross bookings gross of between $40.25 billion and $41.75 billion, or 18% to 23% year over year growth. It’s also calling for adjusted EBITDA of $1.58 billion to $1.68 billion, or 45% to 54% year over year growth.
“Uber’s growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability,” added Dara Khosrowshahi, CEO. “The Uber consumer has never been stronger–more people are using the platform, and more frequently, than ever before–while drivers and couriers earned a new all-time high of $17.9 billion over the quarter.”
