This morning, ride-sharing giant Uber (NYSE:UBER) increased its first-quarter outlook on increasing demand. Uber stated that its rides business is quickly returning from the omicron-induced drop in Q4 2021. Now, UBER stock is up less than a percent this morning as the greater markets see yet another day in the red.
Is now the time to buy UBER stock?
Well, today the company raised its predicted Q1 guidance for earnings before interest, taxes, depreciation, taxes and amortization (EBITDA). The company increased its outlook from roughly $115 million EBITDA at the midpoint to $140 million at the midpoint. CEO Dara Khosrowshahi commented on the increased prospective:
“Our Mobility business is bouncing back from Omicron much faster than we expected […] We’re seeing healthy and growing demand across all use cases, highlighting just how eager consumers are to get moving again.”
If you recall, Uber was hit especially hard by the pandemic. As the whole world seemingly went inside, the ride-hailing app saw a quick drop in activity. While there had been clear moments of resurgence following March 2020, the omicron variant quickly put people back home.
As the latest major variant recedes back into dormancy, though, its seems that Uber is returning to the spotlight. Uber has even stated that trips and gross bookings are approaching 95% of pre-pandemic levels.
Let’s see what the experts think about UBER stock’s potential going forward.
3 Analysts Weigh In on UBER Stock
- Wedbush analyst Ygal Arounian maintained an “outperform” rating for Uber with a $48 price target. This is below the previous $57 price target but it still gives the stock plenty of room to run. UBER currently trends around $29 per share.
- Tipranks’ panel of 24 analysts give the stock a Strong Buy rating with an average price target of $62.58. This represents upside of more than 110%. Only one of the analysts recommended that investors sell UBER stock.
- Finally, The Wall Street Journal shows a panel of analysts that is also bullish on Uber. Of the 42 analysts covering the stock, 37 rated it as a Buy or Overweight. Just five analysts recommended to Hold or Sell the stock. The average price target for UBER is $60.63.
On the date of publication, Shrey Dua did not hold (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.
