Uber Technologies Inc (NYSE: UBER) is up 4.0% on Wednesday after a Barclays analyst said the stock could more than double from here.
Uber could benefit from a recession
Ross Sandler reiterated his “overweight” rating on Uber this morning and raised his price target further to $53 a share. Previously, he had a PT of $48 on the stock. The analyst wrote:
One of the best times to generate positive returns in consumer internet tends to be when tocks go from sentiment doghouse to less-bad and eventually to the positive camp – we think this may be one of those moments for Uber.
Sandler expects the American mobility company to be a “major beneficiary” of recession. The stock down 55% from its all-time high offers a very attractive entry point, he added.
Jim Cramer agrees to the bullish call
Agreeing to the bullish call on CNBC’s “Squawk on the Street”, Jim Cramer recalled that Uber Technologies Inc is succeeding in bringing its principal cost down. He added:
Barclays says the time is right. Uber is at a radical inflection point because with the so-called recession, drivers are now available. And everyone’s going out. So, yes, I also think that this is the time to start accumulating position.
Last month, Uber reported market-beating results for its fiscal first quarter. The $51 billion company is expected to turn profitable in 2023.
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