BMO Capital raises Uber stock price target to $113 on delivery growth

Published 06/08/2025, 21:50
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Investing.com - BMO Capital raised its price target on Uber Inc. (NYSE:UBER) to $113.00 from $101.00 on Wednesday, while maintaining an Outperform rating on the stock. The new target sits within the analyst range of $76-$120, with Uber’s stock currently trading near $89, after gaining nearly 28% over the past six months.

The firm cited Uber’s recent financial performance, which included a 0.5% beat on Gross Bookings and a 2% beat on Adjusted EBITDA, with strong Delivery growth offsetting lower performance in Mobility and Freight segments. According to InvestingPro data, Uber’s EBITDA has reached $4.57B, supporting its GREAT Financial Health Score.

Delivery growth accelerated by 200 basis points to 20% excluding foreign exchange effects, marking the fastest growth rate since the fourth quarter of 2021, according to BMO Capital.

While Mobility Bookings came in lighter than expected, the firm noted that July U.S. trip growth indicates an acceleration is likely for the third quarter of 2025.

BMO Capital also highlighted Uber’s $20 billion share repurchase authorization as an encouraging sign, with the remaining $23 billion buyback representing approximately 12.5% of Uber’s current market capitalization of $186.62B.

In other recent news, Uber Technologies Inc . reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.63, slightly exceeding the forecasted $0.62, and reported revenue of $12.7 billion, above the anticipated $12.47 billion. Despite these positive earnings results, Uber’s stock saw a minor decline in premarket trading. Analysts at BofA Securities maintained a Buy rating on Uber, highlighting the company’s strong overall growth and stable bookings, which indicate continued healthy user engagement. Similarly, BTIG reiterated a Buy rating with a $100 price target, noting the ongoing strength in delivery services and high-teens growth rates in mobility rides, especially in the US market. Both firms emphasized Uber’s margin expansion across all segments. These developments underscore the company’s robust performance and potential for continued growth.

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