Gold prices bounce off 3-week lows; demand likely longer term
On Wednesday, Goldman Sachs updated its financial outlook for Uber Technologies Inc . (NYSE: NYSE:UBER), raising the price target on the company’s shares from $96.00 to $110.00. The firm sustained its Conviction Buy rating, endorsing the stock’s potential. This aligns with the broader Wall Street sentiment, as InvestingPro data shows analysts maintain a strong buy consensus with price targets ranging from $68 to $115, while three analysts have recently revised their earnings expectations upward.
Goldman Sachs’ optimism follows Uber’s first-quarter earnings report for 2025, which revealed several positive developments. The company reported strong top-line trends throughout the first quarter and provided encouraging second-quarter commentary. With revenue growth of 17.96% and a market capitalization of $175.33 billion, Uber’s Mobility segment saw sustained trips growth, while its Delivery service benefited from broadening merchant relationships and increased order frequency.
Additionally, Uber has continued to demonstrate a consistent ability to grow its adjusted EBITDA, which stands at $3.54 billion, showcasing effective execution in improving incremental margins. The company’s financial health score on InvestingPro is rated as "GREAT," reflecting strong operational execution. The company has also been active in the autonomous vehicle (AV) space, announcing five new or expanded AV partnerships in the past week. These efforts align with Uber’s strategy to position itself as a network operator in a future that could see a mix of human-driven and autonomous vehicles, as detailed in Goldman Sachs’ January deep-dive into autonomous and gig economy growth.
Uber has also been active with its capital, repurchasing around $1.8 billion in shares during the quarter. The company reaffirmed its commitment to balancing capital returns with strategic growth investments and margin enhancements.
Goldman Sachs noted that investor discussions have recently centered around the macroeconomic demand landscape, potential platform pricing volatility, and the long-term implications of the broader AV secular theme. Despite these debates, the firm remains confident in Uber’s prospects and has increased its 12-month price target to reflect adjustments in operating estimates based on the latest earnings report and management’s forward-looking statements. According to InvestingPro, the stock is currently trading near its Fair Value, with high EBITDA and P/B multiples suggesting premium valuations. Investors can access detailed valuation analysis and 13 additional ProTips through InvestingPro’s comprehensive research report.
In other recent news, Uber Technologies Inc. reported its first-quarter 2025 earnings, revealing a significant earnings per share (EPS) of $0.83, which surpassed analysts’ expectations of $0.51. However, the company’s revenue slightly missed forecasts, coming in at $11.53 billion compared to the anticipated $11.62 billion. Despite the revenue shortfall, Uber achieved a record adjusted EBITDA of $1.9 billion, marking a 35% year-over-year increase. Jefferies, a prominent research firm, maintained its Buy rating on Uber, raising the company’s stock price target from $90 to $100, reflecting confidence in Uber’s growth and incremental margins. The firm highlighted Uber’s strategic expansion in autonomous vehicle partnerships, which is expected to bolster its market position and contribute to total addressable market growth. Furthermore, Uber’s mobility and delivery segments demonstrated strong profit expansion, with delivery margins improving to 3.7% of gross bookings, up 70 basis points year-over-year. Uber’s ongoing investments in autonomous vehicle partnerships and international expansion underscore its focus on steady growth and margin improvement. These developments indicate a robust operational performance and strategic positioning in the market.
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