What happened
News of an analyst price target bump plus a modest expansion of one aspect of its business gave a little acceleration to Uber's (UBER -0.82%) stock on Thursday. The rideshare operator's market price rode more than 2% higher on the day as a result, doubling and then some the rate of the S&P 500 index's 0.8% increase.
So what
The price target raiser was Loop Capital's Rob Sanderson, who tweaked his level on Uber stock before market open. He now pegs its fair value at $42 per share, up slightly from his previous $40 estimation. This doesn't change his recommendation on the shares, which is still buy.
The motives behind the adjustment weren't immediately clear. What was apparent, though, is that Sanderson is one of a clutch of prognosticators currently bullish on Uber's looming future. Collectively, they believe that for both the company's current quarter and the entirety of this fiscal year, it will manage to substantially improve both its revenue and profitability.
In other news reported Thursday morning, pharmacy chain operator Walgreens Boots Alliance, food delivery king DoorDash, and Uber announced that they were teaming up to deliver same-day, free delivery of HIV medications. Eligible patients within 15 miles of a participating Walgreens will be eligible for the service.
Now what
Taken together, these two pieces of news support the bull case for Uber stock. The company has been particularly assertive in the delivery sphere, and with the Walgreens/DoorDash collaboration it's clearly seeking to expand its scope and reach with the segment.
