Oppenheimer raises target on its top large-cap pick Uber as S&P 500 inclusion nears

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Oppenheimer raises target on its top large-cap pick Uber as S&P 500 inclusion nears
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Oppenheimer analysts raised the target on Uber (NYSE: UBER ) shares by $10 to $65 per share.

Uber remains a top large-cap pick at Oppenheimer as the analysts have increased confidence in the company’s consumer tailwinds.

“Gross bookings increased 19% in 1Q; UBER guided +15% in 2Q as it is positively exposed to favorable consumer spending verticals. Categories driving gross bookings including travel and restaurants are forecasted to grow 15% this year. Meanwhile, consumer weakness in building materials and furniture stores, down 11% y/y in April, and electronics and clothing stores, down 3% in May, does not affect UBER,” they explained in a note.

Moreover, they argue that UBER is “positively exposed to a higher-end consumer less impacted by inflation.”

Another reason to own Uber is that the stock is expected to be included into the S&P 500 , which the analysts say could happen as early as December.

Uber shares are up almost 1% in premarket Wednesday.

 

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