Deutsche Bank Calls Out Attractive Entry Point on Uber Stock

The security has lost over 27% this year

Digital Content Manager
Mar 11, 2022 at 9:15 AM
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Ride-hailing giant Uber Technologies Inc (NYSE:UBER) was the recipient of a bull note from Deutsche Bank this morning, and the shares are on the rise in response, last seen up 2.4% at $31.14. The analyst initiated coverage on UBER with a "buy" rating and a $50 price target -- a 64% premium to last night's close. Deutsch Bank cited the company's position as a leader in the fast-growing ride sharing market, and called its current valuation an attractive entry point for investors. 

Now could certainly be time to buy the dip on UBER. The stock just fell to a nearly two-year low of $28.27 on March 8, though this level was home to a substantial bounce for the equity back in August 2020. The stock is still down 27% in 2022, with several trendlines still looming above as potential rejection levels, including the 30-day moving average. It's also worth noting that the equity sports a 14-day relative strength index (RSI) of 33, which sits right on the cusp of "oversold" territory, signaling that a short-term bounce may already be in UBER's future. 

Deutsche Bank joins a mostly bullish brokerage bunch. Of the 23 in coverage, 20 said "buy" or better coming into today, compared to just three "hold" ratings. Meanwhile, the 12-month consensus price target of $59.68 is a 92.1% premium to last night's close. 

Options traders have also been optimistic, according to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.46. This ratio stands in the low 9th percentile of its 12-month range, suggesting short-term options traders have rarely been more call-biased. 

 

 

 

 

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