Is Uber stock a ‘Buy’? Analysts say yes

In this article we provide a quick-take on ride sharing giant Uber – which is currently on Syfe’s list of stocks with the most potential upside, according to Wall Street analysts. 

Uber overview 

While Uber rose to prominence for displacing the taxi industry, over the last few years the company has become increasingly well known for its food delivery business – UberEats.

And despite a tumultuous period that saw the high-profile exit of founder and CEO Travis Kalanick in late-2019 – Uber has continued to grow and is arguably now one of the most recognisable companies in the world. 

Uber fundamentals 

As Uber attempts to move towards profitability, the company has continued to grow its top-line revenue rapidly. 

In the second quarter of 2022 the ride sharing company notched up total bookings of US$29.1 billion, driving revenue up 105% to US$8.1 billion in the quarter.

Earnings – on an adjusted EBITDA basis – have also improved significantly in recent times, reaching US$364 million in the second quarter of 2022. Net cash flow was also positive in Q2, swinging to US$439 million.

Uber share price performance 

Since January, the Uber share price has fallen ~36%, as tech stocks across the board come under heavy selling pressure. Nonetheless, Uber shares have significantly outperformed peers like ride-sharing company Lyft, which has seen its stock fall 69% – from January 1 to October 21, 2022.

Uber share price outlook: where will the stock head next? 

As Uber’s fundamentals improve, analysts are increasingly bullish on the stock. 

At the time of writing, Uber was rated a Buy on average, according to Wall Street analyst data. That rating was made up of 36 Buy ratings, 5 Overweight ratings, and 4 Hold ratings.

Finally, the average analyst price target of US$46.94 on Uber implies potential upside of 67% – from where the stock closed on 21 October, 2022.

How to buy and invest in US shares

Whether you’re just getting started investing or just want to take things to the next level, with Syfe you can invest in over 10,000+ US stocks & ETFs, all from the palm of your hand. 

Not only that, but when you invest with Syfe, you get FREE monthly stock trades, access to powerful features like recurring buys and fractional trading, as well as daily customer support. All of this means you can take advantage of new investment opportunities when they emerge, any time, any where. 

To start investing in US shares like Uber with Syfe, follow these simple steps:

  • Download our app & create a Syfe account or login to Syfe app on your mobile device
  • Search for the stock you’re looking to invest in 
  • Tap ‘buy’ on the app screen
  • Choose between ‘buy in dollars’, ‘but in shares’ or ‘Limit order’ then just slide to buy
  • Confirm your order and monitor your stock investment

This article/webinar is brought to you by Syfe Australia Pty Ltd., CAR number 1295306 of Sanlam Private Wealth Pty Ltd (AFSL 337927). Disclaimer: Investing involves risk including the risk of losing your invested amount. We do not provide personalised advice or recommendations.  Any information we provide is general advice and current at the time  written. Please speak to your Financial or Tax adviser for personal advice. Any reference to an investment’s past or potential performance is not an indication of any specific outcome or profit.