This MKM Partners’ analyst sees an over 60% upside in Uber stock

Uber Technologies Inc (NYSE: UBER) hasn’t performed well this year, with shares down about 25% from the year-to-date high of $63 in February. But MKM Partners is confident that things will change for the ride-hailing stock in the future.

MKM names Uber a top pick for the back half of 2021

On Friday, MKM Partners Rohit Kulkarni reiterated his buy rating on Uber and raised his price target from $50 per share to a record $76 per share that translates to an over 60% upside. The research firm named Uber a top pick for the back half of 2021, citing it “finally has a line-of-sight for profitability”.

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Uber is scheduled to report its financial results for the second quarter on August 4^th. The San Francisco-based company avoided a $59 million fine from California regulator earlier this week.

Peter Najarian’s comments on CNBC’s “Halftime Report”

On CNBC’s “Halftime Report”, the co-founder of optionMONSTER and Uber investor, Peter Najarian, acknowledged that the stock has struggled in recent months but said now was the time to hold the shares.

“You hold this one. $76 is the price target, that’s about the average Uber ride these days. We know they don’t have enough drivers; they’ve surged prices like crazy, and we’re going to continue to see that until September at least. So, I think this is a good call. I think Uber goes back over $50, probably to around $55; I don’t know about $76, even though, as I said, that’s the average Uber ride these days.”

The news comes almost a month after Evercore ISI’s Mark Mahaney said Uber was well-positioned to meet the post-COVID higher demand as vaccine rollouts and the ride-hailing firm spending $250 million on driver incentives this year is making workforce return quickly.