Uber Technologies Inc. rose above its $45 initial public offering for the first time on Wednesday as more analysts continued to take a bullish view of the ride-hailing giant.
Uber gained as much as 6.8%, extending the stock’s rally to a record four days. Raymond James joined a growing list of analysts who are optimistic about the company’s prospects after the expiration of a quiet period for Uber’s underwriters ended on Tuesday. The firm initiated coverage of Uber with an outperform rating and $50 price target, in anticipation of core platform contribution turning positive and growing in 2020.
“Investors have focused heavily on Uber’s take rate and Core Platform contribution pressure,” analysts Justin Patterson and Aaron Kessler wrote. “As competitive pressures in North America and Latin America ridesharing ease, Uber’s Core Platform contribution should turn positive once more and growth should re-accelerate.”
Of the 30 analysts tracked by Bloomberg that cover Uber, 23 have the equivalent of a buy rating and none recommend avoiding the stock.