Uber Technologies’ (UBER) Q4 results indicate that the ride-hailing firm is operating on all cylinders with strong growth and increasing profitability, RBC Capital Markets said in a note emailed Thursday.
Uber surpassed expectations after it posted Q4 earnings of $0.66 per diluted share, up from $0.29 a year earlier and above the Capital IQ consensus of $0.17.
RBC said Uber looks set up for new long-term targets and an inaugural capital return outlook during its investor day next week. The firm also sees “significant headroom” in advertising which reached a new high of $900 million in run rate with potential for “outsized” margin expansion moving forward.
RBC Capital maintained its outperform rating on the company’s stock while raising its price target to $85 from $65.
Uber shares were up 1.6% in recent Thursday trading.