Benchmark Reiterates Hold Rating on Uber Inc. (UBER)

Benchmark analyst Daniel L. Kurnos reiterated a Hold rating and {REMOVEPT} price target on Uber Inc. (NYSE: UBER).

The analyst commented, "The dynamics for this one were always going to be interesting going into the print with an extremely accommodative sell - side consensus and a very bulled up investment community. The primary storyline that emerged was fairly simple, in our view: do you trust that Uber’s impressive MAPC growth can continue, and to what extent do those cohorts end up mimicking Uber’s legacy users? In addition, while it was not optimal that Uber recorded a modest miss in the mobility segment, especial ly with the swirli ng AV narratives around Tesla and Waymo, it does feel a bit short - sighted to write off the substantial outperformance in delivery at a time where we continue to see incremental competitive pressure. The aggressive buyback announcement was certainly a vote of confidence with regards to cash flow as well, even as EBITDA failed to really impress both in the current and out quarter (if one can call 35% consistent growth failing to impress). The challenge we have is trying to figure out what gets the stock higher from here; there should be plenty of headlines (in both directions), but Uber cannot quite seem to crack the code on pushing the share price to the next level. That is why we think it all comes down to the MAPCs; if those additional MAPCs begin to increase usage at a similar clip to legacy cohorts, we think the profile of the Company changes meaningfully in the out years, and thus, so too will the narrative."

For an analyst ratings summary and ratings history on Uber Inc. click here. For more ratings news on Uber Inc. click here.

Shares of Uber Inc. closed at $89.22 yesterday.

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