Gold prices bounce off 3-week lows; demand likely longer term
On Thursday, Barclays (LON:BARC) analyst Ross Sandler adjusted the price target for Uber Technologies Inc . (NYSE: NYSE:UBER), increasing it to $97 from the previous $86 while maintaining an Overweight rating on the company’s shares. The adjustment reflects a positive outlook on the company’s recent financial performance and strategic moves within the autonomous vehicle (AV) space. The company’s stock has shown remarkable momentum, with a 38.68% return year-to-date, and according to InvestingPro data, maintains a "GREAT" financial health score of 3.48 out of 5.
In his analysis, Sandler noted that Uber’s reported and projected gross bookings and EBITDA are largely as expected, with the company generating $3.5 billion in EBITDA over the last twelve months. He highlighted the ongoing developments in the robotaxi sector, where Uber is expected to compete with Waymo and Tesla (NASDAQ:TSLA), particularly in the Austin market. Sandler pointed out that Uber is wisely diversifying its partnerships in the AV domain, both in the United States and internationally. With revenue growth of 17.96% and a strong market position, InvestingPro analysis indicates the company is currently trading near its Fair Value.
Despite some skepticism about the ability of tech startups to catch up with the AV advancements made by Waymo or Tesla, given the significant capital they have invested in technology and testing, the analyst sees this as a long-term play. He mentioned that setbacks in the sector, such as those experienced by Zoox, indicate that full development might take considerable time, which is ultimately favorable for Uber.
The report also touched on Uber’s delivery segment, acknowledging that while the space is becoming increasingly competitive, Uber’s financial performance is expected to remain strong. Sandler concluded by emphasizing Uber’s attractiveness as an investment, citing its 16x projected 2026 EBITDA and low exposure to tariff and recession risks. The company’s P/E ratio of 15.16 and return on equity of 60% support this positive outlook. For deeper insights into Uber’s valuation and growth prospects, investors can access comprehensive analysis and additional metrics through InvestingPro’s detailed research reports.
In other recent news, Uber Technologies Inc. reported its first-quarter 2025 earnings, which revealed an earnings per share (EPS) of $0.83, significantly surpassing the forecast of $0.51. However, revenue slightly missed expectations, totaling $11.53 billion compared to the anticipated $11.62 billion. Despite this revenue shortfall, Uber achieved a record adjusted EBITDA of $1.9 billion, marking a 35% increase from the previous year. KeyBanc Capital Markets, Goldman Sachs, and Jefferies have all updated their price targets for Uber, reflecting positive sentiment towards the company’s growth prospects. KeyBanc raised its price target to $90, maintaining an Overweight rating, while Jefferies increased its target to $100, keeping a Buy rating. Goldman Sachs went further, lifting its price target to $110 and sustaining a Conviction Buy rating. These revisions follow Uber’s strategic initiatives in autonomous vehicles and expansion into new market segments, which have been highlighted as significant growth drivers. Additionally, Uber’s ongoing share repurchase program, with around $1.8 billion repurchased during the quarter, underscores its commitment to balancing capital returns with growth investments.
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