What happened
Uber Technologies (UBER -0.07%) stock stayed in the fast lane a day after the company delivered a strong first-quarter earnings report. On Wednesday, a clutch of analysts either upgraded their ratings on the ridesharing giant or applied the gas pedal to their price targets. As a result, Uber shares closed the day nearly 4% higher.
So what
As if competing for the last ride home from a popular destination, analysts fell over themselves to upgrade their takes on Uber Wednesday.
One of the more enthusiastic prognosticators was Susquehanna Research's Shyam Patil, who upgraded his recommendation on the stock to positive (i.e., buy) from his previous neutral. He also cranked his price target on the shares from $40 apiece to $48.
"It's clear the company's positioning continues to strengthen, while simultaneously showing improving operating leverage," Patil wrote in the research note detailing his changes. He also cited "a plethora of large growth opportunities ahead" as reasons for his upgrade.
Uber published its earnings report Tuesday morning, and its numbers were quite encouraging. Fueled by notable increases in both monthly active customers and total bookings, revenue increased by a robust 29%, beating the average analyst estimate. Atypically for the frequently money-losing company, its net income landed in the black on a GAAP basis.
Now what
Patil and quite a few of his peers are expecting Uber shares to keep cruising higher, although for the most part, their price target hikes this week were cautious.
Among these pundits was Mizuho Securities' James Lee, who now pegs the stock's fair value at $55 per share, up from the preceding level of $50. Morgan Stanley's Brian Nowak, meanwhile, bumped his target up from $54 to $57. Both maintained their equivalents of buy ratings.
