Analysts are Supporting Uber Despite a Rocky IPO

Many analysts have a “buy” rating on ride hailing company Uber and out of 25 analysts, not one has a “sell” rating.

“They’re disrupting delivery of goods to your home, they’re disrupting personal transportation,” Loop Capital Markets Managing Director Jeffrey Kauffman said to Yahoo Finance’s On the Move.

He added, “The big thing here on Uber that’s not being talked about very much is the move to autonomous and self-driving vehicles. We think you’re going to see this sometime in the next three to five years. That’s going to be a very big win.”

Uber has invested almost $1.1 billion into Advanced Technologies Group’s work on autonomous driving since the year 2016.

Loop Capital Markets, which has a “neutral” rating on Lyft’s stock, expects a compound annual growth rate of 20% for ride share.

According to Kauffman, there’s so much more to Uber than just ride-sharing alone.

“When we look at Uber it’s not just ride share, it’s the move into restaurant delivery, home delivery. We see that growing at a 47% rate,” explained Kauffman. “The move into freight as well. We see that growing at a 54% rate. It’s a diversified play. There’s more ways to win here ”

Uber recently reported a loss of $1 billion in its last earnings report.

“Yes we’re in a period of heavy investment here,” said Kauffman. “We expect to see heavy losses but we think it will dissipate in two years.”

Disclaimer: We have no position in Uber Technologies Inc. (NYSE: UBER) and have not been compensated for this article.