Uber rises as Deutsche Bank starts at buy, sees 60% upside (NYSE:UBER)

Uber Technologies (NYSE:UBER) shares rose on Friday after Deutsche Bank started coverage on the mobility company, noting it has several positives going for it, including the ability to “unlock large and growing [total addressable markets].”

Analyst Benjamin Black started coverage on the stock with a buy rating and a $50 price target, implying some 60% upside, writing that it has “global market leadership” in areas that are growing; a number of “durable and defensible core growth drivers,” as well as low investor sentiment.

“Uber’s current businesses address a roughly $7 trillion market (of which a subset is serviceable), and our bullish view on the stock is grounded in its powerful platform synergies, which should drive faster and more efficient penetration of the [total addressable market] versus its competitors,” Black wrote in a note to clients.

“We think Uber’s platform can drive higher customer and supplier captivity than any of the pure play mono-product alternative services.”

Uber (UBER) shares rose slightly more than 2% to $31.04 in mid-day trade.

In addition, Black noted that Uber’s (UBER) platform is likely able to bring higher customer and supplier levels than its competitors, such as Lyft (NASDAQ:LYFT) due to the fact it offers multiple services, such as ride-hailing, Uber Eats and logistics.

“As such, we think density will be much higher across both sides of the marketplace, which not only lowers costs, but also improves the respective products,” Black explained.

Earlier this week, Uber (UBER) raised its expectations for Adjusted EBITDA in the first-quarter, highlighting strength in its mobility and delivery units.