Uber Platforms stock was downgraded by Wedbush analysts to neutral from outperform on Uber's mixed first-quarter earnings report on Wednesday. Uber stock was a fraction higher in premarket trading after falling 2.5% yesterday following its Q1 report.
Wedbush analyst Scott Devitt raised his price target for Uber stock to 85 from 80 in a client note Thursday but downgraded his overall view on the stock. Uber's first quarter results published Wednesday beat earnings expectation but offered slightly lower revenue and gross booking than expected.
"Shares of Uber have appreciated considerably over the last few years, as the business model recovered post-pandemic," Devitt wrote. "Notably, in recent periods, the magnitude of beats versus estimates has contracted materially as performance has caught up to investor expectations."
Uber's business is now "well understood and the lack of clear catalysts in the near-term will limit upside to expectations in the current environment," Devitt added.
On the stock market today, Uber stock was down a fraction at 83.90 in premarket action.
Uber Stock Rebounds
Uber shares were ahead 38% this year entering Thursday's trading, compared to a 4.3% year-to-date loss for the S&P 500. Shares are nearing an October peak at 87. Uber stock slumped late last year on fears that autonomous vehicles from Waymo and Tesla would challenge Uber's hold of the ride-hailing market.
Other analysts were more positive on Uber following the Q1 results.
Jefferies analyst John Colantuoni upped his Uber stock price target to 100 from 90 and reiterated a buy call late Wednesday.
"Solid growth and elevated incremental margins underscore Uber's strong trajectory, despite mobility bookings falling below high expectations," Colantuoni wrote to clients. "Further progress on expanding Uber's ecosystem of AV (autonomous vehicle) partnerships also helps solidify it as the platform of choice and supports the bull case for TAM (total addressable market) expansion in low density markets."
Uber's smaller rival Lyft will report first quarter earnings later today.
