KeyBanc analysts upgraded Uber (NYSE:UBER) shares to Overweight from Sector Weight with a price target of $60 per share.
The analysts made a move as Uber prepares to report earnings next week.
“We believe expense discipline at Uber should continue driving an EBITDA and FCF inflection,
while advertising provides a lever to keep prices low to drive volumes,” the analysts wrote in a note.
“We are more comfortable projecting a mid-teens growth profile with a path to $7.7B in EBITDA by 2025E, making valuation undemanding at a 2025E EV/EBITDA of 11.9x vs. peer Airbnb at 16.5x,” they added.
On the other hand, KeyBanc remains Sector Weight-rated on Lyft (NASDAQ:LYFT) as they would like to see more clarity on how insurance renewals roll through the model signs of durable volume growth before turning more bullish on the name.
Uber shares traded 1.8% higher in early Friday trade.