EU and US could reach trade deal this weekend - Reuters
On Tuesday, Citi analysts reiterated a Buy rating and maintained a $102 price target on Uber Inc. (NYSE: UBER), a $175 billion market cap company that has earned a "GREAT" financial health score according to InvestingPro analysis. This decision follows Uber’s announcement of a leadership change, with Andrew Macdonald, the current Senior Vice President of Mobility and Business Operations, being appointed as President and Chief Operating Officer. This appointment comes after the retirement of Pierre-Dimitri Gore-Coty, the Senior Vice President of Delivery.
The strategic move aims to integrate leadership for both Mobility and Delivery divisions, potentially enhancing operational efficiency as Uber continues to expand its Uber One and GoGet services across various sectors. The company reported a 20% year-over-year growth in Mobility gross bookings in the first quarter, with similar expectations for the second quarter. This growth aligns with the company’s overall revenue growth of 17.6% over the last twelve months, as reported by InvestingPro. The Delivery segment is also benefiting from sustained demand in the food sector and increasing adoption in newer areas like grocery and retail.
Citi analysts highlighted the ongoing improvements in Uber’s profitability as a positive factor, with the company maintaining a healthy gross profit margin of 33.6% and generating $7.8 billion in levered free cash flow over the last twelve months. They also noted the upcoming launch of Tesla (NASDAQ:TSLA)’s robotaxi service in Austin, Texas, set for June 12, and Waymo’s achievement of completing over 250,000 paid trips per week, marking a 150% increase since August 2024.
The analysts remain optimistic about Uber’s growth prospects, emphasizing the company’s ability to adapt and expand in the evolving mobility and delivery markets. Trading at a P/E ratio of 14.3, with eight analysts recently revising earnings estimates upward, the reiteration of the Buy rating and $102 price target reflects confidence in Uber’s strategic direction and operational performance. For deeper insights into Uber’s valuation and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Uber Technologies Inc . (NYSE:UBER) has seen a notable upgrade in its financial standing, as Moody’s Ratings elevated the company’s senior unsecured notes to Baa1, citing Uber’s robust growth and increased profitability. The company reported a 49% year-over-year increase in adjusted EBITDA for the twelve months ending March 2025, alongside generating $7.8 billion in free cash flow. Uber’s liquidity remains strong with $7.2 billion in unrestricted cash and a $5 billion revolving line of credit. Additionally, BMO Capital Markets maintained an Outperform rating for Uber, setting a price target of $101, supported by the company’s recent acquisition of Denmark’s largest taxi company, Dantaxi, and its expansion in autonomous vehicle technology.
Tigress Financial Partners also raised Uber’s stock price target to $110, maintaining a Buy rating due to strong demand in ridership and delivery, as well as partnerships and innovation in autonomous vehicle technology. Loop Capital adjusted its price target for Uber to $105, emphasizing the company’s efficient business model and growth in trip volume and delivery segments. Similarly, JPMorgan increased its price target to $105, citing Uber’s management’s confidence in achieving its three-year goals, including significant growth in gross bookings and EBITDA.
These developments reflect a positive outlook for Uber, with analysts highlighting the company’s strategic investments in autonomous vehicles and other growth opportunities. As Uber continues to expand its service offerings and geographical reach, its financial performance and strategic partnerships remain focal points for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.