Citizens JMP reiterates Market Perform rating on Uber stock

Investing.com - Citizens JMP has reiterated its Market Perform rating on Uber Inc. (NYSE:UBER), citing the company’s strong execution of its autonomous vehicle (AV) partnership strategy. The transportation giant, currently valued at $192.8 billion, has demonstrated robust financial performance with 17.6% year-over-year revenue growth and maintains a GREAT financial health score according to InvestingPro analysis.

The firm believes that AVs do not pose a threat to Uber’s long-term business model, as the company is positioned to operate a hybrid network combining both autonomous vehicles and human drivers.

Citizens JMP notes that this hybrid approach will ultimately allow AVs to reduce ride-sharing costs over time and expand Uber’s total addressable market (TAM).

Despite these positive factors, the firm views Uber’s current valuation as fully capturing the company’s growth potential, with shares trading at 17.8x Citizens JMP’s 2026 estimated EBITDA of $11.3 billion.

The research firm projects an 18.7% margin for Uber in 2026 and considers the shares to be fairly valued at current levels.

In other recent news, Uber Technologies Inc . announced a strategic partnership with Baidu (NASDAQ:BIDU) to integrate autonomous vehicles into its platform in international markets. This collaboration will see Baidu’s Apollo Go self-driving vehicles join Uber’s network in regions like Asia and the Middle East. Uber has also secured its role as the official rideshare and on-demand delivery partner for the LA28 Olympic and Paralympic Games, enhancing transportation and delivery services for the event. On the financial front, Needham raised its price target for Uber to $109, citing pricing strength and competitive dynamics, while BofA Securities increased its target to $115, highlighting potential tax benefits for drivers. Evercore ISI maintained its Outperform rating with a $115 price target, noting favorable driver supply conditions and positive rideshare trends. Additionally, Uber’s partnership with Waymo in Austin is showing promising results, potentially expanding to new markets. These developments reflect Uber’s ongoing efforts to expand its technological capabilities and strengthen its market position.

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