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On Tuesday, BMO Capital Markets reaffirmed its confidence in Uber Technologies Inc . (NYSE:UBER), maintaining an Outperform rating and a $92.00 price target. According to InvestingPro data, analysts’ targets for Uber range from $68 to $115, with the stock currently trading at $78.33. The company’s overall financial health score is rated as "GREAT," with particularly strong momentum and growth metrics. BMO Capital’s analysis underscores Uber’s strong position in the third-party (3P) delivery market, citing several key factors that support the company’s growth prospects.
The firm highlighted Uber’s effective product-driven strategy, which they believe is unlocking the Mobility Total (EPA:TTEF) Addressable Market (TAM) on a global scale. This strategy includes the successful launch of Waymo on Uber in Austin, which is expected to contribute to an increase in autonomous vehicle (AV) bookings. Additionally, BMO Capital anticipates ongoing upside to Uber’s Delivery estimates due to incremental merchant growth. The company’s revenue has grown 17.96% over the last twelve months to $43.98 billion, demonstrating strong market execution.
Uber’s Mobility bookings have grown 20% in the first half of 2025, aligning with the company’s mid-to-high teens growth outlook over three years. The firm attributes this performance to improvements in frequency, an expansion of use cases, and rising penetration rates in key markets across the United States, Europe, and India.
Despite the potential of AVs, BMO Capital believes widespread adoption is more than five years away due to substantial capital expenditures, the need for extensive mapping, and regulatory discussions. However, they view Uber as well-positioned to generate meaningful free cash flow over the next decade without owning a capital-intensive AV fleet.
Early indicators from the collaboration between Waymo and Uber in Austin are positive, with increasing search interest in Waymo through April. This partnership is seen as a significant growth opportunity for Uber’s gross merchandise volume (GMV), complementing the company’s existing eight million drivers.
BMO Capital also noted the expansion of Uber’s Delivery selection, with the addition of well-known merchants such as The Home Depot (NYSE:HD), Sally Beauty (NYSE:SBH), FreshDirect, and Petco in the first quarter of 2025. This expansion is expected to contribute to Uber Delivery’s 18% growth guidance for the first quarter of 2025, with additional tailwinds anticipated in the second half of 2025 and into 2026. InvestingPro analysis reveals the company maintains a healthy gross profit margin of 33.19% and strong cash generation, with levered free cash flow of $6.89 billion in the last twelve months.
Regarding the Federal Trade Commission (FTC) lawsuit against Uber One, BMO Capital’s legal experts believe that consumer behavior is unlikely to change significantly as a result of the lawsuit. They expect the order velocity for Uber One members to remain three times higher than non-members.
Finally, BMO Capital’s projections for Uber’s gross bookings and adjusted EBITDA remain unchanged for 2025 and 2026, at $187 billion/$212 billion and $8.7 billion/$11 billion, respectively. The firm also anticipates a moderation of insurance headwinds in the high single-digit range. With a market capitalization of $163.81 billion and a P/E ratio of 16.63, Uber operates with a moderate level of debt and has demonstrated strong returns over the past five years. For deeper insights into Uber’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Uber Technologies Inc. and Volkswagen (ETR:VOWG_p) Group of America have announced a strategic partnership to introduce a fleet of autonomous, all-electric ID. Buzz AD vehicles for ride-hailing services in the U.S., starting with Los Angeles. Testing is set to begin later this year, with a commercial launch planned for 2026. Meanwhile, Uber is also facing a lawsuit from the U.S. Federal Trade Commission, which alleges that the company enrolled users in its Uber One subscription service without their consent and made misleading claims about the service.
In financial news, Truist Securities has maintained a Buy rating on Uber with a price target of $92, citing strong performance in Uber’s Mobility and Delivery services. Cantor Fitzgerald also reaffirmed its positive stance, maintaining an Overweight rating and an $80 price target, anticipating that Uber’s first-quarter bookings and EBITDA will likely meet the upper end of its guidance. Additionally, Uber is reportedly in talks to acquire Trendyol Go, a Turkish food delivery platform, although no final agreement has been reached. These developments highlight Uber’s ongoing efforts to expand its service offerings and address legal challenges.
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