Uber: Susquehanna initiates with 'neutral' rating
(CercleFinance.com) - Susquehanna is initiating coverage of Uber with a "neutral" rating and 42-dollar target price, agreeing that the US ride-hailing giant is a "once in a generation company.
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While the broker is not concerned about the lack of profitability, given the company's growth stage, Susquehanna believes that slowing growth creates uncertainty around future trajectory.
It also notes that Uber's financial model is "extremely complex," with various segments, adjustments and new Internet metrics, and that there are no direct and relevant peers yet.
"We believe all of these factors are likely going to weigh on the valuation," Susquehanna says, adding that the current valuation appears to capture much of the near- to intermediate-term upside potential.
The shares are currently down 0.2% at 41.5 dollars in New York.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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While the broker is not concerned about the lack of profitability, given the company's growth stage, Susquehanna believes that slowing growth creates uncertainty around future trajectory.
It also notes that Uber's financial model is "extremely complex," with various segments, adjustments and new Internet metrics, and that there are no direct and relevant peers yet.
"We believe all of these factors are likely going to weigh on the valuation," Susquehanna says, adding that the current valuation appears to capture much of the near- to intermediate-term upside potential.
The shares are currently down 0.2% at 41.5 dollars in New York.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.