Oppenheimer analysts raised the target on Uber (NYSE:UBER) shares by $10 to $65 per share.
Uber remains a top large-cap pick at Oppenheimer as the analysts have increased confidence in the company’s consumer tailwinds.
“Gross bookings increased 19% in 1Q; UBER guided +15% in 2Q as it is positively exposed to favorable consumer spending verticals. Categories driving gross bookings including travel and restaurants are forecasted to grow 15% this year. Meanwhile, consumer weakness in building materials and furniture stores, down 11% y/y in April, and electronics and clothing stores, down 3% in May, does not affect UBER,” they explained in a note.
Moreover, they argue that UBER is “positively exposed to a higher-end consumer less impacted by inflation.”
Another reason to own Uber is that the stock is expected to be included into the S&P 500, which the analysts say could happen as early as December.
Uber shares are up almost 1% in premarket Wednesday.