Uber: Canaccord Genuity initiates coverage with 'buy'
(CercleFinance.com) - Canaccord Genuity has initiated coverage of Uber Technologies with a "buy" rating and a target price of 55 dollars, citing a large market that should "get much bigger" and a diversified platform that fosters competitive advantages.
According to the Canadian broker, Uber is perhaps the best exemplification of the modern private equity-enabled tech sector unicorn, having raised close to 25 billion dollars pre-IPO, and entering the public markets with a valuation of 82 billion dollars.
However, the scope of Uber's investment and expansion framework virtually ensures delayed profitability for several years, Canaccord said in a report.
"All that said, we are bullish on the stock as we see the vast global transportation market as poised for disruption, and Uber as the dominant player in the revolution," it added.
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