April 18, 2024

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 affix the S&P 500.

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.

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