Bernstein reiterates Outperform rating on Uber stock after solid Q2

Published 07/08/2025, 14:30
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Investing.com - Bernstein maintained its Outperform rating and $110.00 price target on Uber Inc. (NYSE:UBER), a prominent player in the ground transportation industry with a market capitalization of $186.57 billion, following the company’s second-quarter results. According to InvestingPro data, analyst price targets currently range from $76 to $150, reflecting diverse market expectations.

The ride-hailing and delivery company delivered what Bernstein described as a "healthy and largely in-line" quarterly performance, with particularly strong results in its Delivery segment that appear to be continuing into the third quarter. The company’s overall revenue grew 18.15% year-over-year, supporting its GREAT Financial Health score from InvestingPro.

Mobility segment growth met guidance at approximately 19% year-over-year trip growth, though gross bookings were slightly below expectations. Bernstein noted that Mobility gross bookings are tracking below trip growth, primarily due to moderating insurance costs, which the firm views positively.

Bernstein indicated that while the quarterly results reinforced its view that there may not be significant upside to second-half 2025 investor expectations, the company’s investments in product development, regional expansion, and affordability initiatives should yield benefits in coming years.

The firm suggested that as market focus shifts beyond Uber’s 2026 targets, there is increasing potential for the company to exceed expectations.

In other recent news, Uber Inc. has been the focus of several analyst updates following its latest financial results. Susquehanna has raised its price target for Uber to $105, highlighting the company’s solid second-quarter performance, with key performance indicators exceeding expectations. UBS also increased its price target to $117, noting stronger-than-anticipated growth in both the mobility and delivery segments. The firm attributed the topline growth miss to Uber passing lower insurance cost benefits to consumers rather than competitive pressures.

Meanwhile, Wells Fargo (NYSE:WFC) slightly trimmed its price target to $119, while maintaining an Overweight rating, citing promising early results from Uber’s partnership with Waymo in Austin. BMO Capital raised its price target to $113, pointing to Uber’s strong delivery growth, which offset lower performance in other segments. BofA Securities maintained its Buy rating with a $115 price target, emphasizing Uber’s strong overall growth and stable user engagement. These recent developments highlight varied analyst perspectives on Uber’s financial health and future potential.

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