It’s comeback time at Uber Technologies following a rough beginning as a publicly traded company.
Shares of the ride-hailing company (ticker: UBER) are up for the fourth straight day, rising as high as $45.66 in Wednesday afternoon trading, above the $45 initial public offering price. The 6.8% surge far outstripped the 0.6% gain in the S&P 500.
That is 27% higher than the stock’s 52-week low, set on May 13, and well above its closing price of $41.57 on its first day as a public company.
The stock’s recent run started after financial results reported after the close of trading on May 30 came in better than Wall Street expected.
This week, a slew of Wall Street firms have helped out, advising clients to buy Uber shares. Twenty firms launched coverage of the ride-hailing giant and 17 rate the shares at Buy. The average price target for Uber stock on the Street is now about $54, 20% higher than recent trading levels.
“Investors are starting to recognize the sum of the parts valuation,” Wedbush analyst Dan Ives told Barron’s. “And there is a relief rally in the stock as the Street realizes the price war between Lyft and Uber is over in the near term.”
Ives says he believes the market is overlooking the value in Uber businesses other than ride-hailing, such as Uber Eats and Uber Freight. Wedbush has a Buy rating on Uber stock and a $65 price target.
Lyft (LYFT) shares are benefiting too, rising more than 6% this week, although that stock remains down 15% from its $72 offering price.
Uber’s rally is good news for growth investors who believe ride-sharing is a transformational business model with the potential to disrupt the automotive business.
Other unicorn companies—privately held startups worth more than $1 billion—planning to raise money selling shares to the public in 2019 are also likely breathing a sign of relief. Uber’s recovery may make it a little easier to raise money via IPOs.