Shares of Uber (NYSE:UBER) are in the red today, although Wells Fargo sees tons of potential for the ride-hailing leader. This morning, the financial services company named UBER stock one of its top picks for 2024.
Wells Fargo analyst Ken Gawrelski currently has an “overweight” rating and a price target of $64, which was previously raised from $59. His price target implies an upside of about 9% from current prices.
Gawrelski acknowledges Uber’s high marketing costs but believes that higher sales and EBITDA will be able to counter these costs. On top of that, Wells Fargo believes that Uber has enough capital to repurchase 20% of its market capitalization during the next three years. The firm expects Uber to disclose a stock repurchase plan during the first half of 2024.
On TipRanks, Gawrelski is ranked #3,552 among 8,664 total Wall Street analysts. He carries a 63% success rate and an average one-year return of 4%.
Wells Fargo Selects UBER Stock as 2024 Top Pick
Shares of UBER stock had a fantastic 2023, increasing by about 143%. In December, the company received a major boost after it was announced that it would be added to the S&P 500, effective as of Dec. 18. The index tracks the 500 largest companies that trade on U.S. exchanges. These companies must also be profitable during the most recent quarter and throughout the past four quarters.
After the announcement, Oppenheimer hiked its price target to $75 from $65. “Following the inclusion, we expect UBER to lean into growth and share buybacks, which should increase investor sentiment for growth/return in 2024,” said analysts at the firm.
On the other hand is Nomura, which lowered its rating from “buy” to “neutral” while raising the price target from $59 to $62. With impressive gains in 2023, Nomura notes that the company is currently trading at a fair valuation with positive catalysts already priced in.
UBER carries an average price target of $63.72 among 44 analysts with coverage of the stock, implying an upside of about 9%.
On the date of publication, Eddie Pan 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.
