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On Tuesday, Bernstein analysts, including Nikhil Devnani, maintained their Outperform rating on Uber Inc. (NYSE:UBER) shares with a steady price target of $95.00, above the current trading price of $85.56. According to InvestingPro data, the stock is trading near its 52-week high of $87, suggesting strong market confidence. The analysts highlighted a significant shift in sentiment towards the company, citing improved quarterly performance and positive developments as catalysts for the change.
Uber, which had faced a challenging start to the year, saw a turnaround following a strong fourth-quarter earnings report and favorable news regarding tariffs. With a remarkable year-to-date return of 41.63% and revenue growth of nearly 18%, the company’s momentum is evident. The analysts noted that previous headwinds have transformed into tailwinds as the company prepares to announce its first-quarter results on Wednesday, May 7, before the market opens.
The analysts underscored several factors contributing to the positive outlook, including multiple autonomous vehicle (AV) announcements and encouraging data from Uber’s partnership with Waymo in Austin. Additionally, foreign exchange rates are posing less of a threat to growth and earnings before interest, taxes, depreciation, and amortization (EBITDA), which reached $3.54 billion in the last twelve months. Third-party trend data suggests that core engagement with Uber’s platform remains robust. For deeper insights into Uber’s financial health and growth prospects, InvestingPro subscribers can access 14 additional exclusive ProTips and comprehensive valuation metrics.
Despite Uber’s relative insulation from direct tariff risks, the analysts acknowledged some secondary impacts related to insurance and the potential implications of a recession. However, they expressed that travel is the primary concern, especially regarding guidance for the second quarter. They anticipate that any headwinds in this area will likely be limited, supported by Uber’s strong financial position with a moderate debt level and healthy current ratio of 1.07.
The upcoming quarterly report is expected to hinge on whether Uber can maintain over 20% growth in Fixed plus Network (FxN) Mobility for the second quarter. The analysts’ commentary suggests a cautiously optimistic stance on Uber’s near-term performance and growth trajectory.
In other recent news, Uber Technologies, Inc. is set to acquire an 85% controlling stake in Trendyol GO for approximately $700 million. This acquisition is expected to enhance Uber’s presence in the Türkiye delivery market. Trendyol GO, a prominent online meal and grocery delivery service, generated $2 billion in gross bookings in 2024. The transaction is anticipated to be finalized in the latter half of 2025, pending regulatory approval. Additionally, Uber has expanded its strategic partnership with WeRide, extending their collaboration to 15 additional cities globally. This move aims to accelerate the deployment of autonomous mobility on a global scale. In another development, Uber has partnered with Momenta to integrate self-driving vehicles into its ride-hailing service in international markets, excluding the US and China. Furthermore, Uber has joined forces with May Mobility to introduce autonomous vehicles in Arlington, Texas, by the end of 2025. These partnerships reflect Uber’s ongoing commitment to advancing autonomous vehicle technology and expanding its global delivery operations.
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