Uber Skids Despite Analyst Touting 'Favorable' Road Ahead

By Yasin Ebrahim

Investing.com – Uber (NYSE:) slipped on Thursday even as one analyst suggested the ride-hailing company is set to enjoy a smoother journey as trends in its U.S. and international markets have steadied.

Guggenheim Securities maintained its buy rating on Uber and its $40 price target on the stock, saying the outlook on the company was “favorable” ahead of the quarterly earnings.

Uber was down about 1%.

“We approach the earnings season with a generally upbeat view of Uber,” Guggenheim said.. “Trends in the U.S. appear relatively stable and (rest of the world) trends (are) healthy…We have a favorable (fourth-quarter) view.”

With concerns mounting about thin margins in Uber’s ride-hailing business, Guggenheim suggested that potential move away from its loss-making India business would underpin overall profitability.

But not all on Wall Street appear to share the optimism.

Just a day earlier, Goldman Sachs (NYSE:) was reported to have cashed on its stake in the company, according to CNBC.

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