Reuters/Andrew Kelly
Uber IPO
- Uber reports fiscal fourth-quarter 2019 earnings results after the close of trading Thursday.
- Despite less-than-stellar stock performance since its May 2019 IPO, Wall Street is overwhelmingly bullish on Uber.
- Here's what four Wall Street analysts are saying about Uber ahead of its earnings release.
- Watch Uber trade live on Markets Insider.
- Read more on Business Insider.
Uber, the ride-hailing company led by Dara Khosrowshahi, will report its fiscal fourth-quarter earnings after the close of trading on Thursday.
Wall Street analysts are overwhelmingly bullish on the company, despite its performance since its May initial public offering.
Although shares are still trading roughly 18% below Uber's $45 IPO price, the company has a consensus price target of $46.03, and 30 "buy" ratings, 12 "hold" ratings, and zero "sell" ratings from analysts that cover the equity, according to Bloomberg data.
Bearish investors were at first hesitant and critical of Uber as it had never turned a profit, putting it in a group of unprofitable unicorn IPOs that struggled in 2019 - at the end of the year, Uber had shed 34% of its value.
But in 2020, Uber's recovered some of its lost ground, most recently surging after offloading its Indian food-delivery business. So far this year, Uber shares have gained 24%.
Regardless of the bumpy start, the road ahead looks positive for Uber, according to Wall Street analysts who expect the company to continue to improve its bottom line and cut back on rider discounts on a path to profitability.
"Across its portfolio of businesses and assets, we see opportunities for market repair, long-tailed TAM and paths to unlock asset value," a team of UBS analysts led by Eric Sheridan wrote of Uber in a January 28 note initiating coverage of the company. UBS also expects Uber to continue growing its bookings rates and expand margins to reach its goal of being Ebitda profitable by 2021.
Here's what four other Wall Street analysts are saying about the company ahead of its earnings release:
Axel Springer, Insider Inc.'s parent company, is an investor in Uber.
