Jefferies says it’s time to “hitch a ride” on Uber shares. The firm named Uber as one of its top picks, with a buy rating and price target of $49 per share, up from $47 per share. The new price target implies that shares could rally nearly 56% from Friday’s close. “We estimate UBER’s core Rideshare/Restaurant Delivery businesses each operate in ~$1 trillion addressable markets, which implies just ~5% penetration and a long runway for growth,” analyst John Colantuoni wrote in a Sunday note to clients. “We believe UBER’s dominant scale and network effect support greater reinvestment into customer experience/ adoption, which should spur frequency/stickiness and grow market share over time,” he continued. The analyst said that Uber’s U.S. restaurant delivery segment was the company’s largest contributor to its earnings growth from 2019 to 2022. “Multiple product offerings (mobility, Eats, new verticals, freight, etc.) and geographic diversity expand UBER’s [total addressable market] while also driving cross-sell opportunities and reducing macro risk,” Colantuoni said. “We also expect a continuation of impressive EBITDA growth to improve confidence in long-term profitability and drive the multiple higher.” Jefferies also estimates Uber’s subscription model, Uber One, will see its members more than double by 2025. This expansion will help boost growth in its Delivery segment, says Jefferies, which has already doubled since pre-pandemic levels. To be sure, Colantuoni noted shares could drop as much as 36% in a downside scenario. He cited slower-than-expected growth in the Delivery business, as well as underwhelming earnings margins improvement as potential headwinds to growth. Uber could lose its market share to its direct competitors in the Mobility and Delivery spaces — which could drive down shares. Uber shares were up 0.4% Monday before the bell. The stock has jumped 27.3% year to date, is down slightly over the past 12 months. UBER YTD mountain UBER in 2023 —CNBC’s Michael Bloom contributed to this report.