Uber stock. Buy, sell or hold?

Following the company’s second quarter results, Roth MKM analyst Rohit Kulkarni has raised his price target on Uber (Uber Stock Quote, Chart, News, Analysts, Financials NYSE:UBER).

On August 6, Uber reported its Q2, 2024 results. The company posted Adjusted EBITDA of $1.6-billion on revenue of $10.7-billion, a, topline that was up 16% year-over-year.

“Uber’s growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability,” CEO Dara Khosrowshahi said. “The Uber consumer has never been stronger–more people are using the platform, and more frequently, than ever before–while drivers and couriers earned a new all-time high of $17.9 billion over the quarter.”

The analyst summarized the quarter.

“Uber reported a “small beat and small raise” earnings report with strength in Mobility & Advertising partially offset by in-line Delivery bookings and rising FX headwind,” he wrote. “Advertising became a $1bn ARR business, Trips increased >20% for the sixth consecutive quarter, and Uber now has 156mn monthly active consumers. Our 2024 and 2025 bookings and revenue estimates are largely unchanged whereas EBITDA grinds higher.”

In a research update to clients August 6, the analyst maintained his “Buy” rating but raised his price target on the stock from $89.00 to $90.00.

Kulkarni says the regulatory environment may be improving for Uber.

“Following Prop 22 and driver benefits resolution in Massachusetts, we believe that Uber should face fewer 2H24 hurdles, largely in line with DoorDash (DASH–Buy). With regard to the EU platform work directive, EU lawmakers essentially voted to maintain a status quo with platform worker status continuing to be decided on a country-by-country basis,” he added.