Why This Uber Analyst Says 'Relatively Robust' Q3 Earnings Show 'Healthy Growth'

Wedbush analysts see a buying opportunity in shares of Uber Technologies Inc (NYSE: UBER) after the rideshare company posted strong quarterly results showing it's gaining momentum into 2023.

What Happened: Uber reported third-quarter revenue of $8.3 billion, which was up 72% year-over-year. The number beat average analyst estimates of $8.13 billion, according to Benzinga Pro. 

Gross bookings grew 26% year-over-year to $29.1 billion. Adjusted EBITDA totaled $516 million and is expected to accelerate in the fourth quarter. 

Wedbush analysts described Uber's third-quarter results as "relatively robust" Tuesday in a new note to clients. 

"Uber is continuing to see healthy growth as the driver shortage is essentially over while the company continues to benefit from travel returning, shifting to the office, and other post-pandemic trends continue to hold globally with Uber poised to benefit into 2023," Wedbush said.

Why It Matters: The analyst firm highlighted the company's strong EBITDA results, which point to Uber's ability to effectively manage growth while maintaining profit margins, Wedbush said.

The analysts also highlighted the company's strong fourth-quarter guidance, which "points to management’s confidence to continue to expand aggressively while maintaining profitability."

Wedbush maintained its Outperform rating and $38 price target on Uber following the company's quarterly results.

From Last Month: Is Uber Eating Lyft's Lunch? Here's What UBS Says About The Head-On Collision In Rideshare

UBER Price Action: Uber has a 52-week high of $48.74 and a 52-week low of $19.90. The stock was up 11.33% at $29.58 at time of publication Tuesday morning, according to Benzinga Pro.

Photo: Courtesy of Uber.