Uber stock has been trading sluggishly in recent weeks. But ride-hailing giant Uber still has support from Wall Street analysts.
Oppenheimer analyst Jason Helfstein on Wednesday reiterated a positive outperform rating for shares of Uber, saying the company has the "most upside within large-cap internet" companies.
Uber is still benefiting from "tailwinds from healthy affluent consumers (core UBER customer), travel demand, and services spending," Helfstein said in a client note.
He said the recent correction for the stock provides an "attractive entry point" since estimates for Uber's earnings are higher than before its analyst day on Feb. 14 but its shares are trading lower.
On the stock market today, Uber stock gained 2% to close at 65.82. Shares are up 7% this year, lagging a 12% gain for the S&P 500.
Uber Stock: What's Behind Recent Slump?
Uber stock gained nearly 150% in 2023 and got off to a strong start early in 2024. But shares have mostly traded sideways since a jump that followed its analyst day on Feb. 14. That's when Uber announced plans for its first-ever stock buyback and gave bullish targets for bookings and adjusted earnings growth.
Since Feb. 15, Uber stock is down about 20%. Shares of Uber, as well as those of rival Lyft, took a hit in April, when Elon Musk detailed his vision for Tesla to offer a robotaxi service.
A first-quarter earnings report that showed lower-than-expected ride and delivery bookings set Uber back as well.
Why Oppenheimer Is Bullish On Uber
But Helfstein highlighted several data points in Uber's favor, including strong travel demand. An April consumer confidence survey found the highest-ever share of U.S. household planning an international trip in next six months. The number of Memorial Day road-trippers and air passengers also increased year-over-year, he added.
Another factor to watch: Uber's international rival, Didi Global, is planning an initial public offering in Hong Kong.
"Didi's IPO could drive rationalization of investments, which would be positive for UBER in Latin America (where Didi is No. 1 competitor)," Helfstein wrote.
Oppenheimer reiterated its price target of 90 for Uber stock. The firm also raised its estimates for Uber's gross bookings in 2025 and 2026 by 2%.
Uber Stock Technical Ratings
Separately, analysts at Evercore ISI early Wednesday shared the results of a 2,500-person survey on ride-sharing companies, such as Uber and Lyft. A record-high 55% of respondents said they had used a rideshare service in the past 12 months, according to the report. About 88% of those respondents said they used Uber, according to Evercore, compared to 59% for Lyft.
Uber stock holds a so-so IBD Composite Rating of 61 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
Uber stock's Relative Strength Rating score, meanwhile, is at 82 out of a best-possible 99, indicating it is outperforming 82% of stocks tracked by IBD.
