UBER - Uber selling freight business seen as 'small catalyst' BofA says

2023-03-09 10:23:48 ET

Uber Technologies ( NYSE: UBER ) may be weighing spinning off or selling its freight business, which Bank of America said could be a "small catalyst" for the ride-sharing company.

Analyst Justin Post, who has a buy rating on Uber ( UBER ), said the news should not come as a surprise, given that CEO Dara Khosrowshahi and the rest of the management team have shown the ability to get rid of assets when either competitive advantages or synergies do not show up.

"Simplifying the business and raising cash for buybacks (a potential 2024 stock driver) could be a modest positive for the stock," Post wrote in a note to clients.

The analyst added that if a deal happens, it likely would not impact Uber's ( UBER ) target to hit $5B in EBITDA in 2024.

Uber ( UBER ) shares were little changed in early Thursday trade.

On Wednesday, it was reported Uber ( UBER ) has discussed with its advisor into parting with its freight logistics division, either via an initial public offering or outright sale. The San Francisco-based company would make the move to continue focusing on its ride-sharing and food delivery businesses.

Earlier this week, Uber ( UBER ) signed a new partnership with Tampa International Airport for mobile ordering .

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