Uber shares pop as company is slated to join S&P 500

Uber CEO, Dara Khosrowshahi speaks through the “Intentional Equity in Sustainability” dialog on the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in San Francisco, California, on November 15, 2023.

Andrew Caballero-Reynolds | AFP | Getty Images

Shares of Uber rose greater than 5% on Monday after S&P Dow Jones Indices announced Friday that the ride-hailing company has been chosen to join the S&P 500.

Uber’s spot within the benchmark index is not official till Dec. 18, in accordance to a press release, nevertheless it is widespread 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 substitute Sealed Air Corp. within the S&P 500.

Analysts at Oppenheimer reiterated their outperform rating 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 probably assist enhance buyers’ sentiment about returns.

“Following the inclusion, we count on UBER to lean into progress and share buybacks, which ought to improve investor sentiment for progress/return in 2024,” the analysts wrote in a notice Sunday.

Members of the index should have optimistic earnings in the newest quarter and over the prior 4 quarters in complete, in accordance to S&P’s guidelines. Uber reported web revenue of $221 million on $9.29 billion in income for its third quarter, and up 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 corporations should have an adjusted market cap of a minimum of $14.5 billion.

CNBC’s Michael Bloom contributed to this report.

Don’t miss these tales from CNBC PRO:

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *