Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
On Thursday, BMO Capital Markets affirmed its positive stance on Uber Technologies Inc . (NYSE:UBER), maintaining an Outperform rating and a price target of $101. The firm’s analyst, Brian J. Pitz, addressed the recent 4% intraday dip in Uber’s shares, attributing the decline to the market’s reaction to Tesla (NASDAQ:TSLA)’s announcement of a Robotaxi service launch in Austin on June 12. According to InvestingPro data, Uber’s stock has demonstrated remarkable strength with a 46% year-to-date return and currently trades near its 52-week high of $93.60. Pitz suggested that the market’s response might be exaggerated and stated that Uber’s current share prices are undervalued, a view supported by InvestingPro’s Fair Value analysis. With a market capitalization of $174 billion and strong financial health metrics earning a "GREAT" rating, Uber has demonstrated its market leadership position.
Pitz highlighted several factors supporting Uber’s robust growth prospects, including its international expansion with the recent acquisition of Dantaxi, Denmark’s largest taxi company. This move is anticipated to enhance Uber’s presence in Denmark by offering improved match rates and estimated times of arrival for consumers starting this summer.
The analyst also pointed out the positive trends for autonomous vehicle (AV) adoption in Austin and Uber’s ongoing innovation across its Mobility and Eats segments. He noted the significance of scale, alluding to Tesla’s initial strategy to deploy 10-20 vehicles in Austin, which contrasts with Uber’s plans to introduce hundreds of Waymo vehicles in the coming months, and the scaling of May Mobility to thousands of AVs on Uber’s platform, as well as WeRide’s expansion to 15 additional cities.
Furthermore, Pitz emphasized Uber’s attractive valuation, with shares trading at 19 times next twelve months (NTM) EBITDA, which is below the 2-year forward average of 21 times and significantly lower than the high-band of 27 times. The company’s robust financials include $45.4 billion in revenue over the last twelve months and an impressive 74% return on equity. He commended Uber’s strategy to drive international scale and underscored the company’s position as a winner in the AV space, with over 15 AV partners and the anticipated launch of Shared AV Rides in 2026, expected to attract new users and increase ride frequency due to potentially lower price points. For deeper insights into Uber’s valuation and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Uber Technologies Inc. has been the focus of several analysts who have raised their price targets for the company’s stock. Tigress Financial Partners increased its price target to $110, maintaining a Buy rating, citing strong ridership and delivery demand. Loop Capital also raised its price target to $105, highlighting Uber’s robust growth in trip volume and the positive outlook for its financial performance. Similarly, JPMorgan adjusted its target to $105, supported by discussions with Uber executives that reinforced confidence in the company’s growth goals through 2026.
Additionally, Uber has introduced early access to Waymo rides in Atlanta as part of a pilot program. This initiative is a step towards a full launch later this summer, showcasing Uber’s commitment to advancing autonomous vehicle technology. Meanwhile, Loop Capital Markets raised its price target for Instacart (NASDAQ:CART), noting the potential for Uber to acquire the grocery delivery company due to possible synergies and a large market opportunity. These developments underscore Uber’s strategic efforts in expanding its service offerings and partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.