Analysts remain solidly bullish on Uber. Of 46 brokerages covering the stock, 42 have a Buy or Strong Buy rating, and the other four rate it at Hold. At a share price of around $481.00, the potential upside based on a median price target of $52.00 is 8.3%. At the high target of $75.00, the upside potential is 56.3%.
The consensus revenue estimate for the second quarter is $9.34 billion, up 5.8% sequentially and by 15.7% year over year. Uber is expected to post EPS of $0.23 in the quarter, down 29% sequentially but up from a loss of $0.21 per share in the year-ago quarter. For the full 2023 fiscal year, analysts expect EPS of $1.09, compared with last year’s per-share loss of $3.32, on revenue of $37.57 billion, up 17.9%.
Uber stock trades at 44.2 times estimated 2023 earnings, 28.3 times estimated 2024 earnings of $1.70 and 20.6 times estimated 2025 earnings of $2.34 per share. The 52-week range is $22.39 to $48.43. Uber does not pay a dividend. Total shareholder return for the past 12 months is 106.52%.
Virgin Galactic
For the past 12 months, shares of Virgin Galactic Holdings Inc. (NYSE: SPCE) have tumbled by about 46.8%. The stock’s 52-week high was posted last August, and the stock was on a steady downhill run until about mid-May. The stock has bounced twice this year but has been unable to hold onto its gains. Virgin Galactic’s first commercial flight in more than a year occurred earlier in July, and the company expects to begin monthly flights in August. Everything would be great if Virgin had not issued $300 million in new stock in an at-the-market offering in late June.
Analysts are mixed on the stock. Of 11 brokerages covering the shares, just two have a Buy rating, five more have Hold ratings and the other four have a Sell or Strong Sell rating on the shares. At around $4.00 per share, the stock trades above its median price target of $3.75. At the high price target of $8.00, the implied upside is 100%.
Virgin Galactic is expected to report revenue of $1.47 million for the second quarter, up from $390,000 in the prior quarter and $360,000 a year ago. Analysts also expect a loss per share of $0.52, better than the per-share loss of $0.57 in the first quarter and worse than the year-ago loss of $0.43 per share. For the full year, the company is expected to post a loss per share of $1.92, compared to last year’s loss of $1.89 per share, on sales of $9.21 million, up from $2.31 million in 2022.
The company is not expected to post a profit in 2023, 2024 or 2025. Virgin Galactic’s enterprise value-to-sales multiple for 2023 is 84.8, based on sales of $9.21 million. For 2024, the multiple is 20.9, based on estimated sales of $36.02 million, and for 2025, the multiple is 14.9, based on estimated sales of $50.75 million. The stock’s 52-week range is $2.98 to $8.55. Virgin Galactic does not pay a dividend, and the total shareholder return for the past 12 months was negative 46.75%.
Originally published at 24/7 Wall St.
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