Wells Fargo analysts raised the Uber (NYSE:UBER) price target to $59 from $53 per share in a note Thursday, maintaining an Overweight rating on the stock.
The analysts told investors in a note that they believe Uber increased its self-insurance mix during the first quarter, creating a $550 million free cash flow tailwind in 2023.
Wells Fargo is raising its 2023/2024 FCF estimates to $3.8 billion/$5.8 billion, $600M/$700M ahead of consensus, based on its updated insurance estimates.
"Concurrently, we frame our view on capital returns, noting a 1.5x gross leverage target would create capacity for $27B share repurchase from '24 to '26," the analysts added.
Uber shares have gained over 2% Thursday, currently trading at $44.60 per share.