Shares of Uber (UBER) shifted into a higher gear Wednesday, making gains after a top analyst reaffirmed his bullish rating on the ride-sharing company.

Uber’s stock price rose 0.58% to $31.48 after Merrill Lynch Bank of America analyst Justin Post stuck with his buy rating on the stock and his price target of $53 a share, or more than 50% above where Uber is currently trading.

The analyst contended that investor sentiment, which has been down on Uber, is bottoming out, and that he walked away from a recent visit to Uber’s San Francisco’s headquarters feeling encouraged about the company’s outlook.

While Uber faces increased costs as new California regulations crack down on the company’s reliance on independent contractors to staff its ride-sharing service, Uber executives say the cost will be treated as tax to be passed on to customers, the analyst wrote.

Uber’s stock price is coming off a rough Tuesday, with shares having plunged 5% after London officials rebuffed Uber’s efforts to land a long-term operating license in one of its largest markets.

With Uber’s 15-month probationary license having been set to run out on Wednesday, Transport for London instead granted a short-term permit for the next two months.

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