UPDATE: Bernstein Starts Uber Inc. (UBER) at Outperform

Bernstein analyst Nikhil Devnani initiates coverage on Uber Inc. (NYSE: UBER) with a Outperform rating and a price target of $35.00.

The analyst comments "High risk, high reward. Uber is a beaten up stock that has failed to work since its IPO and investors have grown frustrated. We stay the course. Isolating share price from fundamentals, the company is building momentum on the back of three solid quarters in a row, in a tough operating environment at that. As the clear market leader in rideshare, Uber benefits from the re-open and revenue growth should accelerate this year. More importantly, we think Mobility EBITDA is poised to inflect as volumes recover. Uber's consolidated adjusted EBITDA could improve from -$0.8B in 2021 to $1B+ this year and $5B by 2024 -- operating leverage that trumps the rest of our coverage. The biggest risk to the thesis is the driver supply gap in the US, which has put both Uber and Lyft shares in the penalty box. We expect supply to improve through the year and see Uber as better positioned given investments made last year, cross-platform potential, scale advantage over Lyft, and diversification (Delivery and international better supplied). Unique to Uber is the cross-platform potential that exists across both Mobility and Delivery, which creates an LTV/CAC advantage that's only just starting to materialize. At 13x 2YR forward adjusted EBITDA, we think Uber offers compelling long-term upside, albeit not without volatility and risk."

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 $23.35 yesterday.

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