By Senad Karaahmetovic
Bernstein analyst Nikhil Devnani reiterated an 'Outperform' rating on Uber (NYSE:UBER) and a $35.00 per share price target, which implies an upside of over 60% compared to the current market price.
Bernstein analysts presented a Uber bull case to investors at the firm’s online event US Best Ideas.
Devnani sees Uber as “a stock with the right “formula” for the current environment.” This stance is based on:
1) Revenue tailwinds;
2) Near-term margin expansion which is the primary catalyst for the shares; and
3) A beaten up multiple that offers some downside protection against a tougher operating environment.
The analyst sees Uber shares rallying from here if the ride-sharing company can put up “solid numbers” each quarter.
“Timing wise, we think it prudent to wait for Q2 results to get incremental data points on supply and EBITDA guidance,” Devnani added in a client note.
Uber shares are down nearly 4% today.