Ahead of its much-anticipated IPO, one analyst speculates that Uber looks like the newest member of the FAANG set.
Initiating coverage at "outperform," Wedbush's Dan Ives likened the ridehailing giant to Amazon (AMZN) - Get Report and Facebook (FB) - Get Report , writing that Uber "is paving a similar road to what Amazon did to transform retail/ecommerce and Facebook did for social media." Ives set a 12-month price target of $65 per share.
In a recent filing, Uber set an initial price range $44 to $50 per share in its IPO, which would value the company at $90 billion at the high end.
Despite its loss of $1 billion last quarter, Uber bulls are banking that growth in the ridehailing market, coupled with Uber's expansion into other areas, such as food delivery and trucking, will translate into long-term gains.
"A core tenet of our bull thesis on Uber is around the company's ability to morph its unrivaled ridesharing platform into a broader consumer engine with Uber Eats, Uber Freight, and autonomous initiatives 'just scratching the surface' of the full monetization potential of this platform over the next decade," he added, quoting Uber CEO Dara Khosrowshahi's remarks in Uber's S-1 filing.
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