Uber Technologies is in talks with Aurora Innovation, a self-driving technology startup to sell its self-driving unit – Uber Advanced Technologies Group (UATG), TechCrunch has learnt.
Per TechCrunch’s report, Uber’s (UBER) UATG unit is valued at $7.25 billion and has been funded by investors including SoftBank’s Vision Fund, Toyota and DENSO. Uber and Aurora have been in discussions since October.
If the deal is successful, it would help Uber to offload its expensive and controversial business unit, according to the report. (See UBER stock analysis on TipRanks).
On Nov. 9, D.A. Davidson analyst Tom White raised the stock’s price target to $49 (2.9% upside potential) from $39 and maintained a Buy rating. In a note to investors, White said that the company’s Mobility business is “improving” while the Delivery segment continues to sustain its “robust growth.” The analyst believes that Uber’s ridesharing business will revive strongly post COVID-19 pandemic and sees long-term potential in grocery and Eats division.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 20 Buys and 3 Holds. The average price target stands at $48.57 implying upside potential of about 2% to current levels. Shares are up over 60% year-to-date.
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