Citi cuts Uber stock price target to $92 from $98

On Thursday, Citi analyst Ronald Josey adjusted the price target on Uber Inc. (NYSE:UBER) shares, reducing it to $92 from the previous target of $98, while maintaining a Buy rating on the company’s stock. According to InvestingPro data, analyst targets for Uber range from $72 to $115, with the stock currently trading at $64.48. Josey’s assessment follows Uber’s reported growth in various performance metrics for the fourth quarter of 2024.

Uber’s trips increased by 18% year-over-year, Monthly Active Platform Consumers (MAPCs) grew by 14%, and Frequency rose by 3% in the last quarter of 2024. These figures suggest robust demand for Uber’s Mobility & Delivery services, bolstered by an expanding driver supply and the successful integration of new use cases and modalities.

Although autonomous vehicles (AV) continue to be a major topic of debate regarding their potential impact on demand, Josey believes that Uber’s substantial size, scale, and operational experience position it as a likely central partner to future AV networks.

The analyst also highlighted the impressive growth of Uber One, which ended the period with 30 million subscribers. Additionally, the New Products Gross Bookings (New Products GB) saw a significant increase of 55% year-over-year. Josey suggests that a more stable pricing environment in 2025 could lead to enhanced demand trends.

Despite acknowledging the short-term profitability concerns due to investments in core areas and the headline risks associated with autonomous vehicles, Josey recommends investors to consider any dip in Uber shares as an opportunity. The maintained Buy rating reflects confidence in Uber’s strategic positioning for future benefits.

In other recent news, Uber Inc. has been the focus of several analyst adjustments. Wolfe Research cut the price target to $80, noting aggressive spending and a positive outlook with Uber’s management expressing confidence in achieving over 20% growth in mobility bookings by the first half of 2025. BofA Securities increased the price target to $95, applauding Uber’s bookings and revenue figures surpassing expectations. BTIG reduced the price target to $90, pointing out strong demand for Uber’s mobility and delivery services, while Evercore ISI lowered its target to $115, citing a modest reduction in estimates. Mizuho (NYSE:MFG) Securities maintained a $90 price target, highlighting successful growth investments and potential market share gains. These are recent developments and provide investors with a comprehensive view of the varying perspectives on Uber’s financial performance and future growth prospects.

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