BofA Securities maintains Buy rating on Uber stock amid strong growth

Published 06/08/2025, 19:42
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Investing.com - BofA Securities has reiterated its Buy rating and $115.00 price target on Uber Inc. (NYSE:UBER), citing strong overall growth despite mixed segment performance. The ride-hailing giant, currently valued at $184.6 billion, has demonstrated impressive momentum with a 27.7% price return over the past six months, according to InvestingPro data.

The firm noted that Uber delivered "a strong overall growth quarter" and highlighted that the company’s outlook for stable bookings and trip growth suggests healthy user engagement continues. This aligns with the company’s robust 17.6% year-over-year revenue growth and $4.57 billion in EBITDA for the last twelve months.

BofA Securities pointed to rapid growth in Uber One membership as an indicator of "a stickier long-term consumer" despite autonomous vehicle (AV) traction, while also observing that "a diverse AV ecosystem is rapidly developing" with more OEM deals expected.

The investment bank maintained its recently raised $115 price target based on 23x estimated 2026 free cash flow, which it described as "a big discount to FANG sector at 46x."

Uber remains BofA Securities’ "top pick in the travel/transport sector" due to strong top-line growth and over 25% EBITDA growth, according to the firm’s analysis.

In other recent news, Uber Technologies Inc . reported its second-quarter earnings for 2025, exceeding Wall Street expectations. The company posted an earnings per share of $0.63, slightly above the forecasted $0.62, resulting in a 1.61% positive surprise. Revenue also surpassed predictions, reaching $12.7 billion compared to the anticipated $12.47 billion, marking a 1.84% surprise. Despite these strong financial results, BTIG reiterated its Buy rating on Uber with a $100 price target, citing robust growth in delivery services and stable mobility rides with accelerating growth in the US market. The research firm also noted continued margin expansion across all segments. These developments underscore the positive outlook from analysts regarding Uber’s performance.

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