On Friday, Jefferies reaffirmed a Buy rating on Uber Technologies Inc . (NYSE:UBER), maintaining a $100.00 price target, representing a significant upside from the current price of $65.23. According to InvestingPro data, analyst targets range from $75 to $120, with strong consensus support.
The endorsement comes as Waymo, an autonomous driving technology company, announced its expansion to Miami in collaboration with UBER-supported Moove. This move represents a further step in Waymo's ongoing exploration of different business models as it seeks a sustainable long-term strategy.
The analyst from Jefferies expressed confidence in Uber's prospects, suggesting that the recent development with Waymo does not diminish the potential for a lasting collaboration between Uber and Waymo.
The firm's positive outlook aligns with Uber's strong financial performance, as InvestingPro data shows robust revenue growth of 16.7% and healthy free cash flow of nearly $6 billion over the last twelve months. The company maintains a "GREAT" financial health score and operates with moderate debt levels. Additionally, the analyst noted the reduced competition from Didi, a rival ride-hailing service, which could benefit Uber.
The commentary from Jefferies also highlighted "robotaxi noise" as an element of the bullish stance on Uber. This term refers to the buzz and speculation surrounding the future of autonomous taxi services, which is an area where Uber could potentially make significant strides, especially in light of its connections with Waymo and Moove.
Uber's growth strategy has been closely watched by investors, as the company continues to navigate the competitive ride-sharing landscape and explores new avenues for expansion, such as food delivery and freight. The analyst's reiteration of the Buy rating signals confidence in Uber's ability to capitalize on these opportunities and to maintain its position as a leader in the market.
The reaffirmed price target of $100.00 by Jefferies reflects a positive outlook for Uber's stock performance. Investors and stakeholders in the ride-sharing giant will be paying close attention to how the company's partnership with Waymo and other strategic initiatives unfold in the coming months. For deeper insights into Uber's valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Uber Technologies Inc. has been the focus of several significant developments. Waymo, Google (NASDAQ:GOOGL)'s autonomous driving technology company, announced its expansion to Miami, which analysts suggest could place competitive pressure on ride-hailing services like Uber. The expansion, in partnership with Moove, a global mobility solutions provider, is set to kick off in Phoenix and aims to provide safer, more accessible, and all-electric mobility options.
Meanwhile, financial firms BTIG and Tigress Financial Partners have reaffirmed their confidence in Uber's growth potential. BTIG maintained its Buy rating on Uber, emphasizing the company's successful strategy in managing insurance costs through fare adjustments. Tigress Financial Partners raised its price target for Uber, highlighting strong ridership demand and continuous innovation as key drivers of growth.
On the earnings front, Uber reported a 20% year-over-year increase in Q3 2024 revenue, reaching a record $11.2 billion. The company's Gross Bookings grew by 16% year-over-year to a record $41.0 billion, and Monthly Active Platform Consumers (MAPCs) saw a 13% year-over-year increase to 161 million. The firm's analysis projects an increase in Uber's US mobility EBITDA for 2025, ranging between $3.6 billion to $4.2 billion.
Lastly, Citi maintained its Buy rating on Uber, underscoring the potential for growth in Uber's Mobility and Delivery Gross Bookings (GBs) and the evolving autonomous vehicle (AV) strategy. The firm also pointed to a 17% growth in U.S. Mobility GBs during the third quarter as a sign of Uber's continuing strength.
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