Sanford Bernstein resumes their Outperform rating on Uber Technologies Inc. (UBER:NYE)

STA Research
by: STA Research

Sanford Bernstein resumes their Outperform rating on Uber Technologies Inc. and lowers the target price to $35 from $45 on the company’s stock.

Based on the Uber Technologies Inc stock forecasts from 24 analysts, the average analyst target price for Uber Technologies Inc is USD 58.89 over the next 12 months. Uber Technologies Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Uber Technologies Inc is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Uber Technologies Inc’s stock price was USD 23.78Uber Technologies Inc’s stock price has changed by +0.81% over the past week, -22.87% over the past month and -51.29% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

 

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