Why Uber (UBER) Stock Is Climbing Today

Uber (UBER) is advancing 4% after investment bank Raymond James kept a Strong Buy rating on the shares.

The firm is due to report its fourth-quarter results tomorrow.

Why Raymond James Is Bullish on UBER

The investment bank expects Uber to benefit significantly from its alliance with Alphabet’s (GOOG,GOOGL) Waymo. Specifically, Uber should be able to use its expanding partnership with Waymo to meaningfully expand its market, Raymond James believes.

A close up view of a hand holding a smartphone, using a ride sharing app.

Meanwhile, the investment bank predicts that Uber’s Q4 and Q1 results will be boosted by its continued, elevated prices and its loyalty program. As a consequence, Raymond James predicts that the company’s EBITDA could come in at $1.8 billion for both of those quarters, meeting analysts’ average estimate.

On the negative side, however, the investment bank warns that the ridesharing company could be hurt by currency fluctuations and natural disasters.

Raymond James kept a $95 price target on the shares.

Another Investment Bank Was Recently Upbeat on UBER

Oppenheimer yesterday identified UBER as its best idea heading into the firm’s Q4 results. The investment bank believes that the shares have reached an attractive entry point.

The Recent Price Action of UBER Stock

In the last month, the shares have risen 6%, while they are down 6% in the previous three months.

While we acknowledge the potential of UBER, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.