Uber Technologies (UBER) Stock Price: Why It Increased 2.09% Today

By Amit Chowdhry ● Jun 8, 2022
  • The stock price of Uber Technologies Inc (NYSE: UBER) increased by 2.09% today. This is why.

The stock price of Uber Technologies Inc (NYSE: UBER) increased by 2.09% today. Investors are responding positively to a bullish research report.

Barclays analyst Ross Sandler increased the price target on Uber to $53 from $48 while reiterating an “Overweight” rating on the shares. Sandler also adjusted the rating on the belief that the company shares should outperform upon approaching FCF breakeven and the company becomes self-funding.

“Uber has stated that free cash flow (FCF) trails their definition of Adjusted EBITDA by about $1 billion on a run-rate basis so if the company can achieve the higher end of the 2Q guidance range, and if things should continue to head the right direction in 2H22 (which we expect), we think the company will generate positive FCF in 2022 and beyond,” wrote Sandler in a research note. “This may put some of the concerns around the unit economics and sustainability of the business model to rest. Positive ‘FCF minus SBC’ should arrive in 2023.”

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