Uber full-year results: where next for the share price?

Uber will release its full-year (FY) results on Thursday, with investors hoping for a strong set of earnings that will help propel the stock even higher.

The ridesharing company has had a strong start to 2020, with the stock up more than 25% year-to-date, closing at $37.59 a share on Monday.

Wedbush analyst Dan Ives is certainly optimistic about the stock this year, adding the company to his ‘best ideas’ list on Monday and raising his price target for Uber from $45 to $50 a share.

‘While it will take some time for the Street to get its arms around the growth and fundamental profile of Uber—as well as Lyft—and the ride-sharing market over the coming years,’ Ives said in a note. ‘We believe this week will likely mark an important first step.’

Ives expects Uber to exceed analysts forecasts when it unveils its FY results on Thursday and for the company to upgrade its guidance for 2020.

Wall Street expects the company to report a 67 cent-per-share loss from $5.1 billion in sales in its fourth and final quarter for the 2019 financial year, with analysts forecasting Uber will lose $2.31 a share from $18.1 billion in sales in 2020 – though sales are expected to grow by around 28% next year.

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Analysts broadly optimistic about Uber shares

Wedbush isn’t alone in its optimism for Uber shares, with the 37 analysts offering 12-month price targets for the stock having a median target of $45.

Based on Uber closing at $37.59 on Monday, analysts believe the stock has a potential upside of 19.7%.

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Uber completes acquisition of Careem

At the start of this year, Uber completed its acquisition of UAE-based ride-hailing company Careem in a deal valued at $3.1 billion which helped propel its share price higher throughout January.

With the closing of the deal, Uber has acquired Careem’s mobility, delivery, and payments businesses across the greater Middle East region, with major markets including Egypt, Jordan, Saudi Arabia, and the United Arab Emirates.

‘I’m looking forward to seeing even more innovation from Careem, as they continue to operate independently under their current leadership,’ Uber chief executive officer (CEO) Dara Khosrowshahi said.

‘Working in parallel, our two platforms will be able to build upon the unique strengths of each, to the benefit of drivers, riders, and the cities we serve across the greater Middle East.’