Jun 5, 2019 - Technology

Uber's underwriters say you should buy its stock

Data: Investing.com; Chart: Axios Visuals
Data: Investing.com; Chart: Axios Visuals

Uber is fast recovering from its disastrous first day as a public company last month, and it looks poised to continue rising as Wall Street banks eagerly slapped "Buy" ratings on the stock.

What's happening: The company's so-called quiet period ended Tuesday for the 29 firms that played a role in underwriting its initial public offering. Once allowed to evaluate the company, they were unsurprisingly bullish.

  • Analysts posted 21 Buy ratings, 5 Holds and 0 Sells, according to data compiled by Bloomberg. The average 12-month price target on the stock is $53.70, nearly 33% above where it closed Monday, notes Yahoo Finance's Heidi Chung.
  • The stock rose 3.6% on Tuesday, but remains below its $45 IPO price.

Yes, but: Despite recommending everyone and their mother buy shares in the "transformational" (Bank of America) "leading global player" (RBC) and "categorical market leader" (Oppenheimer), analysts broadly estimated deeper losses than previously expected for the ride-hailing company this year.

Go deeper: Uber's IPO got caught in a perfect storm

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