Uber Technologies (UBER) - Get Report shares traded higher Monday after analysts at Citigroup boosted their rating on the stock to buy, arguing the ride-sharing group's third quarter results could signal renewed revenue growth.
Citigroup analyst Itay Michaeli lifted his rating on the stock to "buy" from "neutral", while keeping his price target on the stock unchanged at $45 per share, in advance of the group's third quarter earnings in mid-November, which he thinks will indicate improving fundamentals for the world's ride-sharing leader. Michaeli also suggests the value of Uber Eats, the group's food delivery service, is not properly reflected in the current share price.
Uber shares were rising 2.39% to $30.38 in trading Monday, a move that would still leave the stock some 32% south of its May 10 IPO with a market value of just under $52 billion.
Uber posted a $4.72 per share loss for its fiscal second quarter this summer, well ahead of the $2.70 tally forecasts by analysts, even as overall revenues rose 14% from last year to $3.17 billion.
However, Uber's ride-hailing revenues grew just 2% from last year to $2.3 billion, the company said, although the average revenue per rider rose 20%. Uber Eats, on the other hand, saw revenues rise 72% to $595 million.
Looking into 2019, Uber said increased spending and expansion costs will likely mean the group posts a full-year loss of between $3 billion and $3.2 billion, but nonetheless sees gross bookings for the ride-sharing platform, which topped 100 million monthly active users in the second quarter, rising to an estimated range of between $65 billion and $67 billion.