Guggenheim advised buying Uber shares. He expects their value to grow by almost 50%

Analyst Guggenheim initiated coverage on shares of cab service Uber with a "buy" recommendation and set one of the highest target prices on Wall Street. He expects the company to increase its capitalization by nearly 50% more - after this year's rally. Uber's stock is showing strong momentum, up about 60% since January. So there are more skeptical assessments in the market: overvaluation may limit further growth.

Guggenheim Securities analyst Taylor Manley initiated coverage on shares of cab and delivery service Uber, recommending buying them, CNBC reports. His target price is $140, which implies a 48% upside relative to the Oct. 14 close. That's one of the highest price targets on Wall Street.

Menley believes that the company's position in the market creates a good environment for further development, and points out its strengths: industry leadership in the network of cab services, technology and brand values.

According to the analyst's assessment, the key driver of sentiment in this market is the debate around autonomous cars. Optimists see the potential for expansion, while pessimists fear the diminishing role of intermediaries such as Uber. Menley predicts that unmanned cars will take about 20% of the U.S. rideshare market by 2035, with growth in international markets lagging five to 10 years behind. In his opinion, Uber, which is actively testing autonomous delivery technologies and collaborating with developers, will benefit from an increased supply of such vehicles.

Uber's shares jumped more than 2.5% at the opening of trading on October 15, but then trimmed the gains and were trading up about 1.2% at the time this text was published.

The company's securities have seen impressive growth this year, with its stock price up nearly 60 thanks to strong growth in drone delivery, according to SimplyWallStreet. Total shareholder returns over the past three years remain strong at over 240%, underscoring investor confidence in the company's strategy.

Zacks analysts also note that Uber shares have been growing steadily due to demand for rides and delivery. However, they express doubts: the company's debt load is too high, and the valuation of the securities already looks overvalued. By their count, Uber is trading at a forward P/E ratio of more than 33, above the industry average. Zacks believes that much of the expected upside is already included in the stock price, and further upside may be limited.

According to MarketWatch, most analysts maintain a positive view on Uber: of the 60 ratings assigned to the company, 48 are recommendations to buy its securities. Another 12 analysts take a neutral position.

This article was AI-translated and verified by a human editor