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Analyst: Uber’s 2024 target will ‘prove very conservative’

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Uber Technology Inc (NYSE: UBER) stock has cut almost in half over the trailing twelve months, but a Neuberger Berman analyst hasn’t yet lost all hope in the mobility company.

Tauber explains why he’s positive on Uber

Jason Tauber sees several signs that suggest the ride ahead with Uber will be a rewarding one. To begin with, the California-based company will pull out of loss this year. On CNBC’s “TechCheck”, he said:

We’re looking at positive free cash flow. About $700 million in adjusted EBITDA. I think their target of $5.0 billion in adjusted EBITDA through 2024 will prove very conservative. That represents only 3.0% adjusted EBITDA margin on bookings.

A day earlier, Uber said it will now list New York City’s yellow cabs on its app, much like it does in several other markets, including Germany.

Uber raised guidance for adjusted EBITDA

Earlier this month, Uber raised its guidance for adjusted EBITDA in the current quarter. Tauber’s bullish outlook also stems from the growth in Uber’s market share. He added:  

They’re gaining share in U.S. across rides and Eats business. We haven’t fully recovered post-pandemic. It’s an asset light business that operates in #1 spot in many markets and duopoly in others. Stock has underperformed but company can regain the mantle as one of the true tech leaders.

Also bullish on Uber is Deutsche Bank that recently assigned a price target of $50 on the stock, representing a 50% upside from here.

The post Analyst: Uber’s 2024 target will ‘prove very conservative’ appeared first on Invezz.