Shares of Uber (NYSE:UBER) have been hit hard this past week as investors take into account the possible effects of the omicron variant. Right now, the stock is down 9% for the past five trading days and 14% for the past month. However, that hasn’t stopped analysts from posing some positive UBER stock price predictions.
Despite the fall, one analyst at UBS recently initiated coverage on UBER stock with a “buy” rating and a sky-high price target of $80. This price target reflects more than 100% upside from current prices and just barely trails the Wall Street high price target of $82.
Here’s what you should know about Uber and its stock moving forward
Will Uber Hit $80?
UBS analyst Lloyd Walmsley had this to say about his recent initiation of UBER stock coverage:
“We think shares price in significant underperformance vs. Lyft and DoorDash in both Mobility and Delivery business. We think that as the company drives Mobility margins and continues to expand their Delivery business through share gains, new verticals and advertising, shares could re-rate in a rather large ‘catch up trade’.”
While Uber still remains unprofitable, Walmsley believes investors are undervaluing Uber when compared to its competitors and that the stock price could see major upside. The analyst also noted that Wall Street is underestimating Uber’s future gross margins. Gross margins are a key metric to track and Uber could reap benefits from low estimates if they report a higher figure.
According to Tipranks, Lloyd Walmsley has a success rate of 65% and an average return of 29.1% over a one-year period. Generally, Walmsley is highly regarded, ranked 101 out of 7,728 total analysts on the site.
Is the analyst’s price target too high? Let’s take a look at other UBER stock price predictions from analysts.
UBER Stock Price Predictions
- DA Davidson has a price target of $68. This figure represents an upside of around 80% from current prices. Analyst Tom White noted that ride-sharing companies could see a boost in customers as the economy slowly recovers from the effects of the pandemic.
- Goldman Sachs has a price target of $64. This figure represents an upside of more than 68% from current prices. Analyst Eric Sheridan sees Uber becoming the “next large-cap platform ecosystem,” given the company’s large consumer base and demographic coverage.
- Wedbush has a price target of $57. This figure represents an upside of 50%. Analyst Ygal Arounian raised his price target by $6 from $51 after Uber reported third-quarter earnings earlier this November.
- Finally, Uber has an average price target of $68.01 across 44 firms.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.