Tigress Financial Partners Starts Uber Inc. (UBER) at Buy

Tigress Financial Partners analyst Ivan Feinseth initiates coverage on Uber Inc. (NYSE: UBER) with a Buy rating and a price target of $66.00.

The analyst comments "We are initiating research coverage on UBER with a Buy rating and a 12-month target price of $66 as the company’s leading position in both ridesharing and food delivery, combined with ongoing innovation and new business partnerships, will continue to drive further revenue growth, a path to profitability, and further shareholder value creation. UBER continues to see accelerating demand for food delivery and ridesharing services. UBER recently reported strong Q1 results as consumers continue to spend more on rides and food takeout despite an uncertain economic outlook and rising prices. Q1 revenue increased 29% Y/Y, 33% on a constant currency basis, to $8.8 billion, as gross bookings increased 19% Y/Y, 22% on a constant currency basis, to $31.4 billion. Total trips increased 24% Y/Y to 2.1 billion, averaging 24 million trips per day in the quarter, driven by both Mobility and Delivery growth. UBER delivered record profitability in Q1 and expects to show sequential increasing profitability in Q2 as it continues to benefit from strong consumer demand trends on travel and mobility, including using UBER for transportation for entertainment and dining. Monthly Active Platform Consumers (MAPCs) improved 13% Y/Y to 130 million, driven by continued improvement in consumer activity for Mobility offerings. Drivers and couriers earned an aggregate of $13.7 billion, up 26% and 30% in constant currency. UBER also launched its redesigned app that prioritizes cross-platform usage across Mobility and Delivery, featuring a new home screen, more personalization, and new ways to track a ride’s live progress without opening the app. UBER also continues to expand its advertising platform by adding Post Checkout ads on Uber Eats that enable non-Eats merchants to advertise within the app and launched a self-service platform for cartop ads. Active advertising merchants in the quarter exceeded 345K. UBER continues to announce new delivery and business partnerships, including the most recent announcement of its partnership with Domino’s Pizza, enabling U.S. customers to order Domino’s products through the Uber Eats and Postmates Apps. UBER also recently announced a delivery partnership with Vroom Delivery to expand and improve convenience store delivery options for consumers. UBER will continue to benefit from the macro trends of the ongoing adoption of TaaS (Transportation as a Service), expand partnerships, and offer increasing and new innovative services. UBER’s industry-leading position in ridesharing and food delivery, along with ongoing investments in R&D and innovation driving new product introductions and its strong brand equity, will continue to drive accelerating Business Performance Trends, growing economic cash flow, and increasing Return on Capital, leading to growing Economic Profit and long-term shareholder value creation. We believe further upside in the shares exists, and our 12-month target price of $66 represents a potential return of close to 40% from current levels."

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 $46.57 yesterday.

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