Uber CEO Dara Khosrowshahi (center) joins other employees in ringing the Opening Bell at the New York Stock Exchange (NYSE) as the ride-hailing company Uber makes its highly anticipated initial public offering (IPO) on May 10, 2019 in New York City.

Raymond James said Uber is well positioned for the "offline" era of the internet.

"We are initiating coverage on UBER with an Outperform rating and $50 target price (9.2x 2020E EV/GP). Shares have clearly been pressured on reasonable concerns on unit economics, competition, and duration of losses. Our view is: 1) competition continues to rationalize over the next 12 months; 2) growth re-accelerates, making unit economics more transparent; and 3) this causes concerns about the "true" TAM and long-term profitability to subside. Net, we believe Uber is strongly positioned for the "offline" era of Internet and should sustain 25%+ revenue growth over the next five years."

Read more about this call here.