JPMorgan has increased its price target for Uber (UBER, Financial) from $92 to $105, maintaining an Overweight rating on the stock following discussions with the company's management. The management conveyed a positive outlook, highlighting that Uber is either meeting or surpassing its goals for the next three years up to 2026. These targets include mid to high teens growth in bookings, a 30%-40% increase in EBITDA, and a 90% conversion rate of EBITDA to free cash flow.
The firm views Uber as a company successfully achieving strong, profitable growth in its primary operations, while also investing strategically for future expansion. Additionally, JPMorgan anticipates that the narrative surrounding Uber's autonomous vehicle initiatives will gain momentum. This expectation is due to promising developments from Uber's partnership with Waymo in Austin, which is demonstrating increased utilization and broader application potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 44 analysts, the average target price for Uber Technologies Inc (UBER, Financial) is $95.48 with a high estimate of $115.00 and a low estimate of $76.00. The average target implies an upside of 3.27% from the current price of $92.46. More detailed estimate data can be found on the Uber Technologies Inc (UBER) Forecast page.
Based on the consensus recommendation from 52 brokerage firms, Uber Technologies Inc's (UBER, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Uber Technologies Inc (UBER, Financial) in one year is $75.75, suggesting a downside of 18.07% from the current price of $92.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Uber Technologies Inc (UBER) Summary page.
UBER Key Business Developments
Release Date: May 07, 2025
- Monthly Active Consumers: Increased by 14% to 170 million.
- Trips: Up 18% year over year.
- Gross Bookings: Grew in line with trips.
- Adjusted EBITDA: Record $1.9 billion, up 35% year on year.
- Free Cash Flow: $2.3 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Uber Technologies Inc (UBER, Financial) reported a 14% increase in monthly active consumers, reaching 170 million.
- The company achieved record adjusted EBITDA of $1.9 billion, up 35% year over year.
- Free cash flow reached $2.3 billion, indicating strong financial health.
- Uber Technologies Inc (UBER) launched a partnership with Waymo in Austin, showing high utilization of autonomous vehicles.
- The company announced several strategic partnerships and acquisitions, including with OpenTable and Trendyol Go, to enhance growth and service offerings.
Negative Points
- The competitive landscape remains intense, with strong competitors in both mobility and delivery sectors globally.
- Insurance costs, although moderating, continue to be a headwind, particularly in the US market.
- There is a mix shift towards more international trips, which affects overall price mix and gross bookings.
- The company faces challenges in expanding into less dense markets where car ownership is higher, potentially impacting frequency of use.
- Macro uncertainties, such as slower airport trips, could impact future growth, although no significant signals have been observed yet.
