Uber shares could surge going forward as the beaten-up ridesharing giant’s recovery continues, according to Raymond James. Analyst Aaron Kessler upgraded Uber to outperform from market perform, noting that the company’s mobility bookings continue to show signs of a strong recovery and shares could rally from here. The firm also put a $38 price target on the stock, which implies a potential 30% gain going forward. The company on Tuesday reported another big loss in the recent period but posted a strong revenue beat and a 57% year-over-year increase in mobility bookings. “Uber is demonstrating strong EBITDA leverage from both the volume recovery as well as increasing operational efficiencies,” Kessler wrote, adding that shares look attractive. Shares of the transportation company have slumped 30% this year but have risen nearly 25% this week alone. Uber expects mobility recovery to continue into the second half of 2022, which should benefit the company going forward, Kessler said. He added that delivery bookings, which grew just 12% year over year, could gain from an increase in memberships. “Members are generating 2.7x the amount of gross bookings as non-members on average,” Kessler wrote. “We believe increasing memberships should help drive solid long-term growth for delivery as well.” — CNBC’s Michael Bloom contributed reporting.
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