DA Davidson Reaffirms Buy Rating on Uber Technologies (UBER) Following Delivery Hero Acquisition Interest

Uber Technologies, Inc. (NYSE:UBER) ranks among the best technology growth stocks to buy under $100. Following news of Uber Technologies, Inc. (NYSE:UBER)’s efforts to acquire Berlin-based food delivery platform Delivery Hero, DA Davidson reaffirmed its Buy rating and $107 price objective for the company on May 26. Analysts say Uber Technologies, Inc. (NYSE:UBER) sees a strategic advantage in growing its global delivery presence and merging Delivery Hero’s operations into Uber’s mobility operations in a number of regions.

Uber Technologies, Inc. (NYSE:UBER) reportedly proposed EUR 33 per share, or nearly $9.3 billion, for Delivery Hero’s remaining shares, in which it owns a 19.5% stake. Delivery Hero acknowledged receiving the offer from Uber, but subsequent reports suggested the bid was rejected.

Bernstein analysts, on the other hand, predict that the acquisition will reduce Uber’s earnings in the short run. According to Bernstein’s base-case model, the acquisition will cut Uber’s GAAP earnings per share by roughly 7% in the first year after closure, with a 1% reduction during the next year as synergies and Delivery Hero’s profitability increase.

Uber Technologies, Inc. (NYSE:UBER) is a global transportation technology company that focuses on ride-hailing, courier services, food delivery, and freight transport.

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