4 big analyst cuts: Uber no longer a Buy, Alibaba downgraded to Market Perform
Investing.com | Author Davit Kirakosyan
Published Jun 28, 2023 18:30
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Uber, Alibaba, Veeva Systems, and Walgreens Boots Alliance.
Never miss another market-moving headline.
Uber no longer a Buy at Daiwa Securities/h2
Uber Technologies (NYSE:UBER) shares fell more than 1% pre-market today after Daiwa Securities downgraded the company to Outperform from Buy with a price target of $51.00 (from $42.00).
Despite the firm increasing its estimates and price target, it cut the company's rating due to strong outperformance in stock, which is up 81% YTD, versus a 13% increase in the S&P500.
The increase in price target reflects higher EBITDA estimates and lower WACC. The firm’s 2024 adjusted EBITDA was raised to $5.2 billion from $5B prior, reflecting higher bookings (GB) growth at Mobility operations and increased profitability at Delivery. Meanwhile, a consistent free cash flow, potential S&P 500 inclusion, and recognized Mobility & Delivery synergies contributed to reducing the WACC to 10.5% from the previous 11.5%.
The firm believes Uber’s global scale and cross-platform synergies make it best positioned to capitalize on increasing penetration while navigating potential downturns and regulatory cost pressures.
Alibaba cut to Market Perform on 'value trap' risk/h2
Bernstein moved to a neutral stance, downgrading Alibaba (NYSE:BABA) to Market Perform from Outperform with a price target of $98.00 (from $130.00) despite the stock's "very cheap" valuation, as reported in real time on
Get The App
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.