The ride-sharing giant’s stock received a nice lift on Tuesday – first from being ordained top technology pick for 2020 by Morgan Stanley, and also from its announcement of its exit from the food-delivery business in India.
Shares of Uber gained after Morgan Stanley named the San Francisco-based company its top U.S. internet pick for the year, and predicted a 57% rally in the ride-hailing giant’s stock on improving profitability and the potential for additional growth in ride-sharing services.
The firm has a $55 price target on Uber’s stock, among the more bullish on Wall Street.
That was followed by Uber’s announcement that it struck a deal to sell its Uber Eats operations in India to local rival Zomato.
As part of the deal, Uber Eats India will direct all restaurants, delivery companies and diners to Zomato. No specific financial details were provided, though sources told Bloomberg the value of the Zomato shares Uber will receive is estimated at about $172 million.
The common theme in both announcements? That Uber is getting a grip on costs, streamlining its operations and focusing its efforts on where it can boost margins and make money – and calling it a day where it can’t.
That has the likes of Morgan Stanley and other analysts including Wedbush’s Ygal Arounian and Daniel Ives a lot more optimistic about Uber’s future prospects – and profitability - and also about its future stock price, which they see rebounding this year.
Catch up on the Latest News, Features & Webinars on TheStreet!
- Uber Investors Are Finally Hitching a Ride
- Latest From Jim Cramer: Coronavirus Could Impact These Two Sectors
- Retirement Daily: Add This Often-Forgotten Task to Your 2020 Financial To-Do List
- Sports Biz: How Much Money Does Conor McGregor Have In The Bank?
- Free Webinar: Expert Advice on Equity Trading by CME Group