Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Wells Fargo Upgrades Uber, Sees More Compelling Price

Courtesy of Benzinga

Wells Fargo Upgrades Uber, Sees More Compelling Price

Shares of Uber Technologies Inc (NYSE: UBER) have lost 45% since Feb. 6, versus a 28% decline for the S&P 500, and shares are now attractively priced, according to Wells Fargo.

The Uber Analyst

Brian Fitzgerald upgraded Uber from Equal-Weight to Overweight, while reducing the price target from $45 to $41.

The Uber Thesis

Uber’s value is still dependent on growth trends and this will play out only after the coronavirus-driven disruptions have subsided, Fitzgerald said in a note. He said growing smartphone penetration and continued shift in spend among riders from personal car ownership to ridesharing as favorable trends for the company.

See Also: Ex-Uber Executive Pleads Guilty To Stealing Google’s Trade Secrets

Uber is well positioned for the challenging times ahead. Fitzgerald said the company is unlikely to face liquidity issues, as it exited fiscal 2019 with $10 billion of unrestricted cash and has a $2 billion revolver and $1.5 billion in covenant-free debt due in 2023.

Even with an 80% decline in volume in its Ridesharing segment, Uber will still exit fiscal 2020 with $4 billion of unrestricted cash, the analyst said.

“Two-thirds of Uber’s cost structure is variable, creating an automatic shock absorber against decreasing revenues,” he wrote in the note.

Fitzgerald expects Uber to emerge from the crisis as a consolidator in the Meal Delivery space.

UBER Price Action

Shares of Uber rose 15% to $23.66 at time of publication Friday.

Latest Ratings for UBER

Date Firm Action From To
Mar 2020 Deutsche Bank Maintains Buy
Mar 2020 Wells Fargo Upgrades Equal-Weight Overweight
Mar 2020 KeyBanc Maintains Overweight

View More Analyst Ratings for UBER


View the Latest Analyst Ratings


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!