NEW YORK - Uber Technologies Inc . (NYSE:UBER)'s stock soared by 4.38% to $59.86 ahead of the market opening today, buoyed by the announcement of its upcoming addition to the S&P 500 Index, slated for December 18. This news has prompted financial services firm Argus to raise its price target for Uber to $69, acknowledging the company's profitability turnaround and substantial growth in its Mobility and Delivery segments by 31% and 18%, respectively.
Argus analysts project that Uber will surpass current consensus estimates with anticipated revenue of $47.1 billion and earnings per share (EPS) of $1.54 for the year 2024. In a similar vein, Oppenheimer has adjusted its price target for Uber upward to $75. The firm cites Uber's strategic focus on growth and stock repurchase initiatives as key factors likely to enhance investor confidence in the long term.
Uber's recent financial performance underscores its strengthened position, with strategic adjustments aimed at improving EBITDA and expanding profit margins, particularly from delivery services. Despite broader economic concerns, these moves have proven effective. The ride-hailing giant reported a net income of $221 million in Q3, with revenues hitting $9.29 billion. Notably, Uber has achieved cumulative profits exceeding $1 billion over the past four quarters.
In a conversation with UBS analyst Lloyd Walmsley, CEO Dara Khosrowshahi outlined plans for sustainable growth, highlighting the company's resilience and adaptability. These strategic discussions come after cost-cutting measures in 2020 resulted in over 3,500 job cuts, indicating a focus on leaner operations.
For the latest quarter ending September 30, Uber reported completing an impressive 2.4 billion trips. However, it faced significant operational expenses that whittled down $35.2 billion in bookings to $9.2 billion in revenue after compensating its vast driver network of 6.5 million drivers.
The company's market capitalization stands at approximately $118 billion, reflecting investor confidence in Uber's business model and future prospects. As Uber prepares to join the ranks of the S&P 500 Index on December 18, market watchers are keenly observing how its inclusion will further shape its stock performance and overall market valuation.
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