BTIG maintains Uber stock Buy rating with $90 target

Published 03/03/2025, 12:54
© Reuters.

On Monday, BTIG analyst Jake Fuller reaffirmed a Buy rating on Uber Technologies Inc . (NYSE:UBER) with a price target of $90.00. Currently trading at $76.01, Uber’s stock has shown strong momentum with a 26% gain year-to-date. According to InvestingPro data, analyst targets range from $68 to $115, with the current consensus maintaining a strong buy recommendation. Fuller provided insights following meetings with Uber CEO Dara Khosrowshahi and Head of Investor Relations Balaji Krishnamurthy, which primarily addressed the company’s strategies surrounding autonomous vehicles (AVs).

The discussions with Uber’s leadership focused on the use of the company’s balance sheet to support the commercialization of AV technology. Fuller highlighted that there were initial concerns when the topic of balance sheet utilization was brought up, but Uber clarified that the capital deployment would be limited to "tens of millions" and would be allocated across three distinct areas.

According to Fuller, these areas include acquiring minority stakes in AV software developers, purchasing minority stakes in fleet operators, and buying AV cars directly. The investment in AV cars drew particular attention due to investor concerns, but Uber described this move as a temporary measure. The goal is to establish a proof of concept for the financing model and to initiate the development of financial partnerships, with the assurance that the capital involved would not be substantial.

Fuller’s reiterated Buy rating and price target reflect confidence in Uber’s strategic approach to AV investment and its potential to facilitate the company’s growth in the sector. The analyst’s commentary suggests that Uber’s measured investment in AVs is designed to enhance its position in the market without placing undue strain on its financial resources.

In other recent news, Domino’s Pizza (NYSE:DPZ) reported that its sales mix from Uber Eats remained steady at 2.7% for the fourth quarter of 2024, similar to the previous quarter, indicating a slowdown in sales growth through that channel. Domino’s has extended its exclusivity agreement with Uber Eats to May 1 and is in negotiations with DoorDash (NASDAQ:DASH) for a potential partnership, which could go national by mid-2025. The company has also announced the launch of two new products this year, although the much-speculated Stuffed Crust has not been confirmed. BTIG analyst Peter Saleh maintained a Buy rating on Domino’s with a $500 price target, reflecting confidence in the company’s strategic moves.

Meanwhile, Uber Technologies Inc. has seen several analyst updates, with Piper Sandler raising its price target to $87 and Oppenheimer increasing it to $100, both maintaining positive ratings. Piper Sandler’s adjustment follows discussions with Uber’s management, which led to revised EBITDA forecasts for 2025 and 2026. Oppenheimer’s optimism is attributed to a shift in investor focus towards Uber’s core business rather than potential challenges from autonomous vehicle services. Loop Capital also lifted its price target for Uber to $89, citing the company’s strategic positioning amid the evolving landscape of autonomous vehicle technology. These recent developments highlight a positive sentiment among analysts regarding Uber’s growth prospects and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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