While Uber has earned a new nickname among investors, being referred to as to “the Amazon of transportation” according to Market Watch, investors are expecting to see one of the biggest IPOs launching already in May 2019.
Expectations are high, so it appears that the watchdogs are already going bullish on Uber IPO.
That is how Daniel Ives and Ygal Arounian, analysts from Wedbush, consider that Uber should go bullish on its initial opening price.
Analysts Bullish on Uber IPO: Share Price Estimates Above Uber IPO Planned Price
Uber announced that the share price of Uber IPO for the opening sale should be set between 44$ and 50$ per share.
However, Arounian and Ives believe that the more realistic price for Uber, one of the most anticipated IPOs in 2019 would be 65$ per share for the opening price.
The two analysts thus consider that Uber is set to outperform, while they have rated Lyft, the main challenger in ridesharing industry to Uber, as neutral.
Uber IPO Backed by a Massive Market Potential
One of the reasons why investors and analysts appear to be bullish on Uber IPO that should be officially out in May 2019, is the company’s market potential.
Uber is used by only 2% in 63 countries and the company managed to get evaluation between 90 and 100 billion dollars, which indicates that Uber could fulfill its potential in the near future in 700 cities around the globe.
The company also operates with food delivery business through UberEats, which provides Uber with yet another source of profit.
Not All Analysts are Bullish on Uber IPO
Tom White, analyst at D.A. Davidson is not as bullish on Uber as Arounian and Ives are, observing the IPO deal from a different angle.
White considers that uncertain profits and potential slowdown in the company’s growth could affect the share price of Uber as well as its first trading session, which is why White rated Uber as neutral with a share price set at 53$.
Additionally, White considers Lyft to be a buy at the beginning of May 2019.