Uber Stock Rises After Inclusion By Goldman Sachs In US Conviction List: Retail Ignores JMP’s Downgrade

Shares of Uber Technologies Inc (UBER) rose over 3% on Thursday after Goldman Sachs added the stock to its US conviction list as part of its monthly update.

According to TheFly, Goldman Sachs believes the firm can continue to deliver on its February 2024 Investor Day commitments despite the rise of autonomous vehicles.

It expects scaling end markets, rising profitability levels, and increased evidence of the platform cross-sell and flywheel effects, leading to a sustained mix of growth, margins, and free cash flow for the ride-hailing firm.

The brokerage currently has a ‘Buy’ rating on the stock with a $96 price target.

Meanwhile, JMP Securities downgraded Uber to 'Market Perform’ from ‘Outperform’ without a price target, according to TheFly.

The brokerage noted that the ride-share industry is transitioning to autonomous vehicles, which offer a better experience.

It highlighted that Google-backed Waymo is "blitzscaling" and has nearly unlimited access to capital given the size and potential of the AV ride-share market.

Although JMP Securities acknowledged that Waymo is still too small to impact Uber's results significantly, it noted that the stock's valuation may be capped until Uber addresses its transition in a better way.

However, retail investors focused on the positives on Thursday, with Uber’s sentiment meter climbing into the ‘bullish’ territory (72/100) from ‘neutral’ a day ago.

Retail chatter on Stocktwits indicated that most retail investors are bullish on the stock.

Some even believe the stock can hit the $100 mark this year.

Recently, Uber was in the news after Taiwan’s anti-trust regulator rejected its bid to acquire Delivery Hero’s Foodpanda, citing anti-competitive concerns.

Meanwhile, Uber shares have gained nearly 7% in the last year.

Also See: Aeva Technologies Stock Jumps On Expanding Collaboration With Daimler Truck’s Subsidiary Torc, But Retail’s Cautious

For updates and corrections, email newsroom[at]stocktwits[dot]com.