Legendary Investor Josh Brown Is Betting Big on This 1 Robotaxi Stock (Hint, It's Not Tesla)
Ritholtz Wealth Management chief executive Josh Brown expects Uber (UBER) shares to remain a top beneficiary of the booming autonomous vehicle market.
In fact, the ride-hailing giant is currently his largest personal holding because of that conviction, he revealed in a recent interview with CNBC.
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Uber stock has been in a sharp uptrend in recent months – and is currently up some 50% versus its April low.
Brown's bullish remarks on Uber shares arrive shortly after the mobility firm extended its robotaxi services to Atlanta, which the market veteran dubbed 'super important' in his CNBC interview.
According to him, self-driving vehicles from all OEMs (Tesla (TSLA), Waymo, or any other) is a massive positive for UBER as the technology removes the human driver – 'the most expensive part of the experience for both the consumer and the company.'
The Ritholtz chief executive believes the NYSE-listed firm will continue to sign new partnerships with autonomous businesses, which he's convinced will deliver a meaningful boost to its profitability over time.
On Wednesday, Josh Brown also confirmed that he wouldn't sell UBER stock even if it surpasses $100 in the weeks ahead.
Josh Brown expects self-driving partnerships to bolster UBER's already strong financials. In May, the ride-hailing giant reported $0.83 of EPS for its fiscal Q1 – well above Street estimates.
Investors should also note that the NYSE-listed firm already has about a dozen partnerships with autonomous players. Just this month, it teamed up with Wayve on 'level 4' self-driving vehicles in London.
That made Justin Post – a senior Bank of America analyst – reiterate his 'Buy' rating on Uber shares with a price target of $97, which indicates potential for another 8% rally from current levels.
UBER does not currently pay a dividend, though.
Wall Street analysts seem to share Brown's optimism on UBER stock, given the consensus rating on the ride-hailing giant currently sits at 'Strong Buy.'
Analysts' price targets on Uber Technologies go as high as $115 at the time of writing, indicating potential upside of more than 25% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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