Stifel analyst Scott Devitt upgraded Uber Technologies (UBER) to Buy from Hold with an unchanged price target of $34.
The stock closed Thursday up 5%, or $1.43, to $29.46.
Uber's business fundamentals are "showing signs of sustainable improvement" while the current valuation "offers a more reasonable entry point," Devitt tells investors in a research note titled "Turning the Corner."
The analyst believes the ridesharing market has experienced "faster-than-expected competitive rationalization" and that Uber demonstrated an accelerated path to profitability. Further, better segment-level disclosure leaves him more constructive on the core Rides fundamentals, and he notes that Uber management has communicated a willingness to exit losing parts of the business.
Devitt continues to believe Uber is "addressing significant transportation and food delivery market opportunities globally."
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