In a report released today, Stephen Ju from UBS maintained a Buy rating on Uber Technologies, with a price target of $122.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Stephen Ju has given his Buy rating due to a combination of factors that highlight Uber Technologies’ potential for long-term growth. Despite a short-term slowdown in margin expansion, the company is experiencing significant year-over-year growth in monthly active platform consumers (MAPC) and trips, which is a positive indicator for investors. Additionally, the Delivery segment is seeing a six-fold expansion in its total addressable market (TAM), supported by a 27% increase in monthly frequency and a broader product selection.
Ju also notes that Uber’s gross bookings have exceeded expectations, with a strong performance in both its divisions. The company’s ability to maintain high teens mid-term gross bookings growth and its free cash flow generation ahead of target are promising signs. Furthermore, Uber’s expansion in key U.S. markets like Phoenix, Austin, and Atlanta, along with the potential growth from robotaxis, supports a bullish outlook on the company’s TAM. These factors collectively suggest that Uber is well-positioned to sustain its growth trajectory.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $110.00 price target.