Uber CEO, Dara Khosrowshahi speaks in the course of the “Intentional Fairness in Sustainability” dialog on the Asia-Pacific Financial Cooperation (APEC) Leaders’ Week in San Francisco, California, on November 15, 2023.
Andrew Caballero-Reynolds | AFP | Getty Photographs
Shares of Uber rose greater than 5% on Monday morning after S&P Dow Jones Indices introduced Friday that the ride-hailing firm has been chosen to hitch the S&P 500.
Uber’s spot within the benchmark index just isn’t official till Dec. 18, based on a press launch, however it is not uncommon for the inventory to rise, since buyers know that managers of index funds that monitor the S&P 500 will add it to their portfolios. Uber will exchange Sealed Air Corp. within the S&P 500.
Analysts at Oppenheimer reiterated their outperform ranking on the inventory and raised their value goal to $75 per share from $65. They stated Uber’s ticket into the S&P 500 will seemingly assist enhance buyers’ sentiment about returns.
“Following the inclusion, we count on UBER to lean into development and share buybacks, which ought to enhance investor sentiment for development/return in 2024,” the analysts wrote in a notice Sunday.
Members of the index will need to have constructive earnings in the latest quarter and over the prior 4 quarters in complete, based on S&P’s guidelines. Uber reported web earnings of $221 million on $9.29 billion in income for its third quarter, and prior to now 4 quarters altogether, it generated greater than $1 billion in revenue.
Uber additionally has a market cap of about $118 billion, which surpasses the S&P’s standards that firms will need to have an adjusted market cap of not less than $14.5 billion.
— CNBC’s Michael Bloom contributed to this report.
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