Bernstein maintains Uber stock Outperform rating, $95 target

On Tuesday, Bernstein analysts maintained their Outperform rating and $95.00 price target for Uber Technologies Inc . (NYSE:UBER), emphasizing the importance of 2025 for the company’s prospects. With a current market capitalization of $152.4 billion and a P/E ratio of 15.5x, InvestingPro data shows Uber trading near its Fair Value. They noted that Uber’s stock has recovered from its lows in 2024, posting a strong 20.8% YTD return, and that the company’s narrative has slightly improved. However, challenges remain, including the need to address a bear case and the impact of the Autonomous Vehicles (AV) debate on the company’s stock multiple.

The analysts pointed out that the growth durability and incremental margin profile of Uber remain critical considerations for investors. Recent data from InvestingPro shows impressive revenue growth of 18% and a healthy gross profit margin of 33.2%. They outlined a four-step catalyst path for Uber, which includes solid Mobility growth in the first half of 2025 to alleviate concerns about slowing consumer demand, positive data from new Waymo partner markets by the second or third quarter earnings calls, the successful integration of smaller AV players into the Uber and Lyft (NASDAQ:LYFT) networks by the third or fourth quarter, and a potential increase in the outlook for capital return.

The firm’s analysis suggests that these steps could help Uber to dispel existing concerns and capitalize on growth opportunities in the evolving transportation landscape. With analyst targets ranging from $68 to $115 and a strong overall financial health score from InvestingPro, Uber’s performance in the coming months, particularly in relation to the AV sector and its market utilization rates, will be closely watched by investors as indicators of the company’s long-term viability and profitability. For deeper insights into Uber’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Uber Technologies, Inc. has announced a partnership with Petco Health and Wellness Company, Inc. to offer Petco’s pet essentials on the Uber Eats platform across the contiguous United States. This collaboration allows customers to order pet products for on-demand or scheduled delivery, with a promotional discount of 40% off on orders of $50 or more. Additionally, Uber is expanding its shuttle services with new routes to John F. Kennedy International Airport and plans to launch similar services at Boston Logan International Airport soon.

In a separate development, Tesla (NASDAQ:TSLA) has received initial approval from California to potentially start a robotaxi service, marking a significant step in its efforts to launch autonomous taxis. Meanwhile, an analyst from Bernstein highlighted the potential impact of autonomous vehicle technology on companies like Uber and Lyft, suggesting a shift in the rideshare market dynamics in the coming years. Citizens JMP analyst Andrew Boone maintained a Market Perform rating on Uber, focusing on the future of autonomous vehicles and their impact on Uber’s long-term strategy.

These developments underscore Uber’s ongoing efforts to diversify its services and adapt to evolving market conditions. As Uber continues to navigate these changes, its partnerships and technological advancements will be closely monitored by industry observers and investors.

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