On Friday, Seaport Global Securities maintained a positive outlook on Uber Inc. (NYSE: UBER), reiterating a Buy rating while slightly increasing the price target to $82 from the previous $81. This adjustment followed Uber's third-quarter results for 2024, which presented a mix of performances across different sectors of the business.
Uber's third-quarter report showed slower-than-anticipated growth in Mobility bookings, with a 17% increase, or 20% on a foreign exchange neutral (FXN) basis. The moderate growth was attributed to challenging comparisons from previous quarters, subdued insurance growth, and negative effects from foreign exchange.
Despite this, the company's Delivery services exhibited a 17% growth, and Advertising revenues saw a significant surge, rising nearly 80% compared to the same period last year.
The analyst highlighted Uber's effective cost management, which contributed to an EBITDA of $1.69 billion, surpassing both the analyst's and the street's expectations by approximately 3%. This demonstration of expense discipline was a key factor in the firm's decision to reassert the Buy rating.
Seaport Global Securities expressed confidence in Uber's future performance, anticipating continued growth in bookings for both the Mobility and Delivery segments. The firm also expects sustained strong growth in EBITDA, reinforcing the positive outlook for the ride-hailing and delivery services company.
In other recent news, Uber Technologies Inc . (NYSE:UBER) has been the subject of several analyst assessments following its latest earnings report. Goldman Sachs (NYSE:GS) reaffirmed its Buy rating with a $96 price target, citing Uber's ability to scale in its end markets and a trajectory toward higher profitability.
BofA Securities adjusted their financial outlook for Uber, reducing the price target from $96 to $93, but maintained a Buy rating. The adjustment came after Uber reported its latest financial results, which showed slightly mixed results compared to Wall Street expectations. The company's bookings were reported at $41.0 billion, revenue at $11.19 billion, and EBITDA at $1.69 billion.
Evercore ISI raised its price target for Uber to $120, maintaining an Outperform rating, following a strong third-quarter performance. The Uber One membership saw a 70% increase year-over-year, reaching over 25 million. The advertising segment also experienced substantial growth, nearly 80%. However, the company faced challenges with rising insurance costs in the U.S. mobility sector, which increased by 16% year-over-year.
These are recent developments for Uber, indicating sustained growth and solid fundamentals. The company's strong quarterly performance is underpinned by strategic moves to expand into less dense markets and partnerships in the autonomous vehicle space.
InvestingPro Insights
Uber's recent financial performance and market position align with Seaport Global Securities' optimistic outlook. According to InvestingPro data, Uber's revenue for the last twelve months as of Q2 2024 stood at $40.06 billion, with a robust revenue growth of 14.44% over the same period. This growth trajectory supports the analyst's expectations for continued expansion in Uber's Mobility and Delivery segments.
InvestingPro Tips highlight Uber's strong market performance, noting a high return over the last year and a strong return over the last three months. These metrics corroborate the company's positive momentum mentioned in the article. Additionally, the tip indicating that Uber operates with a moderate level of debt suggests financial prudence, which aligns with the analyst's praise for Uber's effective cost management.
It's worth noting that InvestingPro offers 14 additional tips for Uber, providing investors with a more comprehensive analysis of the company's financial health and market position. For those seeking deeper insights, exploring these additional tips on InvestingPro could offer valuable perspective on Uber's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.