Stifel has begun coverage on Uber (UBER, Financial) with a Buy recommendation, setting a price target of $110. The firm considers Uber to be evolving into a "super app" with diverse functionalities, including transportation, food delivery, and grocery services, which are enhanced by a growing advertising segment. According to the analyst, Uber's potential to achieve or surpass its financial goals by February 2024 is promising, particularly in the delivery sector. There is also an opportunity for increased advertising revenue, given the current low penetration in this area.
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 $96.46 with a high estimate of $115.00 and a low estimate of $76.00. The average target implies an upside of 11.65% from the current price of $86.39. More detailed estimate data can be found on the Uber Technologies Inc (UBER) Forecast page.
Based on the consensus recommendation from 53 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 $76.66, suggesting a downside of 11.26% from the current price of $86.39. 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.
