Uber raised to Buy at Susquehanna after earnings impress (NYSE:UBER)

MOZCO Mateusz Szymanski/iStock Editorial via Getty Images

A strong earnings beat from Uber Technologies (NYSE:UBER) on Tuesday prompted Susquehanna to step off the sidelines on Wednesday.

The California-based ride-sharing giant reported a top and bottom line beat on Tuesday and outlined continued growth in bookings at a more rapid pace than analysts had projected. Additionally, CEO Dara Khosrowshahi highlighted normalizing industry economics and less aggressive price competition with Lyft (LYFT).

Susquehanna Financial group analyst Syam Patil told clients that a clean Q1 and a strong Q1 guide has coaxed him into assigning a bullish rating to the stock.

“UBER posted another nice quarter, as the company is seeing continued solid top-line traction while demonstrating discipline on the cost side. It’s clear the company’s positioning continues to strengthen, while simultaneously showing improving operating leverage,” he wrote. “These factors, along with a plethora of large growth opportunities ahead, lead us to upgrade to Positive.”

BTIG also reiterated a Buy rating in an appraisal of the results, noting particularly strength in mobility/delivery booking and aggressive bookings forecasts for the full-year.

“The debate ahead of the print was around the potential for a soft 2Q guide (tough post-Omicron comp and q/q increase in insurance costs) and whether that might undermine confidence in UBER’s 2024 objectives,” equity analyst Jake Fuller noted. “The guide topped consensus on bookings/EBITDA, and longer-term commentary from management was upbeat, which should ease concern around the trajectory of the business beyond 2Q.”