Roth/MKM analysts increased the price target for Uber (NYSE:UBER) to $59.00, maintaining a Buy rating. Shares rose more than 3% intra-day today.

The analyst states that their UBER model has been updated, with Gross Bookings and Revenue estimates for 2023/2024 remaining above consensus and unchanged. However, EBITDA and EPS estimates for 2023/2024 have been raised by 15%. The new price target of $59 is based on 0.60x 2024 Gross Bookings and 25.0x 2024 EBITDA.

Despite Uber's strong year-to-date performance of over 90%, the Buy rating is reiterated due to the anticipated accelerated generation of free cash flow in the future, as well as potential non-fundamental catalysts such as S&P 500 addition, stock buybacks, and corporate development actions.