Uber Technologies Inc. (UBER:NYE) Analysts rates as a Strong Buy, see big gains

STA Research
by: STA Research
Uber Technologies Inc

Based on the Uber stock forecast from 27 analysts, the average analyst Uber stock price target is USD 48.58 over the next 12 months. Uber Technologies Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own Uber stock forecast is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Uber stock price was USD 29.25Uber stock price has changed by +6.70% over the past week, +7.91% over the past month and -31.64% over the last year.

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services; and connects riders and other consumers with restaurants, grocers, and other stores with delivery service providers for meal preparation, grocery, and other delivery services. The company operates through three segments: Mobility, Delivery, and Freight. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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.

Superior Revenue Growth:

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

 

What we don’t like:

Poor risk adjusted returns:

Uber stock price history shows that the company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, Uber stock price returns are unpredictable. Proceed with caution.

Below median dividend returns:

The company’s average income yield for Uber stock price 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:

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

Overpriced compared to book value:

Uber stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

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

Negative cashflow:

Uber stock forecast has shown negative total cash flow in the most recent four quarters.

Negative free cash flow:

Uber stock forecast has shown negative total free cash flow in the most recent four quarters.

Disclaimer

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