Andrew Caballero-Reynolds | AFP | Getty Photographs
Uber’s spot within the benchmark index is just not official till Dec. 18, in keeping with a press launch, however it’s common for the inventory to rise, since buyers know that managers of index funds that observe 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 score on the inventory and raised their value goal to $75 per share from $65. They mentioned Uber’s ticket into the S&P 500 will probably assist enhance buyers’ sentiment about returns.
“Following the inclusion, we anticipate UBER to lean into progress and share buybacks, which ought to improve investor sentiment for progress/return in 2024,” the analysts wrote in a word Sunday.
Members of the index should have constructive earnings in the latest quarter and over the prior 4 quarters in complete, in keeping with S&P’s guidelines. Uber reported internet revenue of $221 million on $9.29 billion in income for its third quarter, and previously 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 at the least $14.5 billion.
— CNBC’s Michael Bloom contributed to this report.
Don’t miss these tales from CNBC PRO:
