On Friday, BTIG analysts maintained a Buy rating on Uber Inc. (NYSE:UBER) with a price target of $90.00. The firm's assessment was influenced by a mix of positive management statements and varying data, including U.S. rideshare receipts, foreign exchange challenges, and seasonal trends.
Despite the mixed signals, the analysts pointed out that Uber's U.S. rideshare business received encouraging comments during intra-quarter presentations. However, this was tempered by receipt data suggesting a slowdown in the rideshare segment, which was somewhat counterbalanced by an uptick in the delivery business.
BTIG also noted that Uber has acknowledged the impact of worsening foreign exchange rates since their initial guidance was provided, as well as the typical seasonality in first-quarter bookings, which tend to be flat or decline sequentially. These factors were considered during BTIG's last check-in call with Uber.
Uber's track record of meeting booking expectations was underscored by Fuller, who anticipates the company will achieve its fourth-quarter bookings target. Nonetheless, he expects the results to be more aligned with the midpoint rather than the higher end of Uber's projected 14-18% growth range. Furthermore, the outlook for the first quarter is projected to be modestly slower.
BTIG's analysis suggests that while there are headwinds facing Uber, the company's ability to consistently meet booking targets is a positive sign. The $90.00 price target set by BTIG indicates confidence in Uber's long-term performance despite the near-term challenges highlighted.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.