Uber Technologies Inc (NYSE: UBER) has pretty much been in a downtrend since February 2021 but Emil Michael – the former Senior Vice President of the mobility giant hasn’t lost all hope in this stock.
Michael is constructive on Uber stock
Michael still has a position in the ride-hailing company and expects its shares to see more upside moving forward as long as it’s run efficiently. On CNBC’s “TechCheck”, he said:
I hold it because I think this service is not going away. It’s global. It’s a verb, it’s a noun. And hopefully, it should just work. And if it’s run efficiently, it should deliver profits.
Uber is expected to lose 2 cents a share in its current financial quarter versus a remarkably better 44 cents of EPS a year ago. Nonetheless, Wall Street recommends buying Uber stock as a consensus.
Uber’s commitment to adjusted EBITDA
Analysts are bullish on this San Francisco-headquartered firm primarily for its commitment to $5.0 billion of adjusted EBITDA in 2024. According to Emil Michael:
I still hold this stock as a vote of hope for Dara Khosrowshahi (CEO) and the team that they can take what they’ve just done in free cash flow, reduce stock-based comp as a percentage, and come out the other side of this looking good.
Uber Technologies Inc ended its latest reported quarter with a record number of drivers, confirming that it’s pulling out of the supply issues (find out more).
Wall Street sees upside in Uber stock to $45 on average – about a 50% premium on its current price.
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