Bernstein raises Uber stock price target to $110 on stable mobility trends

Investing.com - Bernstein analyst Nikhil Devnani raised the price target on Uber Inc. (NYSE:UBER) to $110.00 from $95.00 on Monday, while maintaining an Outperform rating on the ride-hailing and delivery company. The company, now valued at $189.4 billion, has demonstrated strong momentum with a 33.7% price return over the past six months. According to InvestingPro analysis, Uber’s overall financial health score is rated as GREAT, supported by robust growth metrics.

The analyst cited stable trends in Uber’s Mobility and Delivery segments as largely positive factors supporting the price target increase. Bernstein noted that second-quarter data points have been supportive, with signs that travel demand may have bottomed out, while foreign exchange headwinds appear to be diminishing. The company’s revenue growth stands at 17.6% over the last twelve months, though InvestingPro data indicates the stock is currently trading near its Fair Value.

For Mobility specifically, the firm believes approximately 20% foreign-exchange-neutral Gross Bookings growth is achievable, and expects it can hold at 19% for the third quarter. This performance would likely drive modest upside to current Wall Street consensus estimates.

Bernstein suggested that considering Uber’s reinvestment mandate, more upside to estimates may come in out-years (2026 onward) as these efforts strengthen Gross Bookings growth. The firm indicated that future upside likely depends more on Uber’s ability to compound free cash flow than on multiple expansion.

The analyst also noted there remains a wide valuation gap between Uber and competitor DoorDash (NASDAQ:DASH), adding that concrete data points around autonomous vehicle fragmentation would likely be needed to drive multiple expansion for Uber.

In other recent news, Lucid Group Inc . (NASDAQ:LCID) announced a strategic partnership with Uber and Nuro, which includes deploying at least 20,000 Lucid Gravity SUVs equipped with autonomous technology on the Uber network. This partnership is accompanied by a $300 million investment from Uber, providing Lucid with a financial boost as it increases production. Morgan Stanley (NYSE:MS) maintained its Equalweight rating on Lucid, noting the potential for additional partnerships and strategic opportunities. Conversely, BofA Securities kept its Underperform rating on Lucid, expressing concerns over CEO Peter Rawlinson’s upcoming departure and questioning the financial implications of recent developments. Meanwhile, Uber Inc. continues to expand its services, with TD Cowen projecting significant growth in its second-quarter bookings and EBITDA. Uber also broadened its SNAP EBT payment program to include Wegmans, Gopuff, and Family Dollar, enhancing food accessibility for SNAP beneficiaries. This expansion allows eligible customers to use their benefits at over 40 retailers through Uber Eats, aiming to reduce food accessibility barriers. Additionally, Waymo expanded its self-driving service in Austin, Texas, from 37 to 90 square miles, strengthening its position in the autonomous vehicle sector.

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