Gold prices bounce off 3-week lows; demand likely longer term
On Thursday, Cantor Fitzgerald analyst Deepak Mathivanan increased the price target for Uber Technologies Inc . (NYSE: NYSE:UBER) shares to $96, up from the previous target of $80, while maintaining an Overweight rating on the stock. The revised price target follows Uber’s first-quarter earnings report, which showed gross bookings (GBs) slightly missing analyst expectations. The company, currently valued at $174 billion, has demonstrated strong momentum with a 38.7% year-to-date return. Despite the GB miss, the company’s EBITDA performance was 2% better than what was visible on Alpha, reaching $3.5 billion for the last twelve months. According to InvestingPro analysis, Uber maintains a GREAT financial health score, with particularly strong metrics in growth and price momentum.
Uber’s Mobility GB growth experienced a deceleration of 4 percentage points excluding foreign exchange effects, down to 20% growth, as the benefits from pricing moderated. However, the analyst predicts that growth should remain stable over the next few quarters. The company’s guidance for the second quarter indicates consistent growth in GBs when adjusted for foreign exchange, along with continuous margin expansion. With an overall revenue growth of 18% and a healthy gross profit margin of 33.2%, Uber continues to demonstrate strong operational execution. InvestingPro subscribers can access 12 additional key insights about Uber’s financial performance and growth trajectory.
The analyst noted that Uber continues to witness healthy consumer growth, frequency gains, and retention in both its Mobility and Eats segments. The company is also progressing operationally, scaling new products, and advancing in strategic initiatives. Particularly noteworthy are the early trends in Austin with Waymo, which demonstrate Uber’s advantages in scale with autonomous vehicles (AVs).
Mathivanan remarked that the first quarter was solid for Uber, and while questions have arisen due to the deceleration in Mobility GB after the first quarter, the underlying fundamentals of the company remain strong. The analyst suggests that Uber is positioned as a defensive or acyclical investment in a volatile market. The new price target of $96 implies an 18 times forward year 2026 enterprise value to EBITDA ratio, compared to the previous 16 times.
In other recent news, Uber Technologies Inc. has reported its first-quarter earnings, which have drawn varied responses from analysts. Wedbush Securities downgraded Uber’s stock rating from "Outperform" to "Neutral" but raised the price target to $85, noting a slight shortfall in gross bookings compared to Street estimates. Meanwhile, Susquehanna increased its price target to $100, maintaining a Positive rating, reflecting an optimistic outlook on Uber’s EBITDA and EPS growth. Barclays (LON:BARC) also raised its price target to $97, maintaining an Overweight rating, citing positive developments in Uber’s autonomous vehicle sector.
Truist Securities reiterated a Buy rating with a $92 target, highlighting Uber’s performance in Mobility and Delivery, despite some pricing challenges. Bernstein analysts maintained an Outperform rating with a $95 target, noting a stable performance in Mobility and an acceleration in Delivery volumes. The firm’s commentary suggests a strong consumer demand and consistent operating leverage. Analysts have also pointed out Uber’s strategic focus on autonomous vehicles, with partnerships in the robotaxi sector positioning it as a key player alongside Waymo and Tesla (NASDAQ:TSLA).
Overall, Uber’s recent financial disclosures have shown growth in gross bookings and adjusted EBITDA, though not entirely meeting consensus expectations. The company’s strategic initiatives, particularly in autonomous vehicles, continue to be a focal point for analysts and investors.
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