Stock Strategist: Raising Our Fair Value Estimate for Uber

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Raising Our Fair Value Estimate for Uber Significant rides segment hits more than offset by growth in the firm's eats business. [tab_bar] by Ali Mogharabi | 5/11/2020 5:30:00 PM While Uber’s [UBER]( rides segment was hit significantly by the current pandemic as demand fell beginning in March, it was more than offset by growth in the firm’s eats business which resulted in better than expected first quarter numbers. Lockdowns and quarantines have spurred demand for food delivery which we think will further strengthen Uber’s network effect moat source during a recovery. We have upped our bookings and adjusted net revenue projections for the eats segment, which pushes our fair value estimate to $48 per share, from $45. While the narrow-moat stock has outperformed the Morningstar U.S. Market index year-to-date and is up 7% in after-hours, we think there is still significant upside. However, we don’t expect the stock will move toward our fair value estimate until there’s an indication of a sustained turnaround in the economy. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [April Fund Upgrades and Downgrades]( [A Thrift Savings Plan Update]( [How to Avoid Paying Extra Taxes on Your College Refund]( Latest Analyst Reports [Zillow Group]( [New Jersey Resources]( [GTT Communications]( [Broadridge Financial Solutions]( [PPL]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.