11:02 AM EDT, 08/07/2024 (MT Newswires) -- Uber Technologies ( UBER ) Q2 beat despite a sizeable foreign exchange headwind and positive outlook are expected to help "subdue" concerns around consumer slowdown, BofA Securities said in a note e-mailed to clients on Wednesday.

On Tuesday, the ride-hailing giant posted stronger-than-expected gains in Q2 results amid robust demand. For Q3, the company expects gross bookings of $40.25 billion to $41.75 billion, implying annual growth of 18% to 23%.

"We viewed Uber ( UBER ) as having the tougher setup amongst gig-economy peers given harder [Q3] comps and elevated incremental margin expectations despite [foreign exchange] pressure in profitable international markets," BofA analyst Justin Post said. "With help from efficiency gains, ad growth, and cost leverage at scale, Uber ( UBER ) is delivering on tough expectations, and an outlook that suggests stable growth from here."

The company's Q3 bookings expectations likely helped alleviate consumer spending slowdown concerns, according to the note.

BofA raised its price objective on Uber's ( UBER ) stock to $88 from $87 while reiterating its buy rating.

Shares of Uber ( UBER ) rose more than 4% in recent trading.

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