Goldman Sachs maintains Uber stock Conviction Buy with $110 target

Published 15/05/2025, 10:26
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On Thursday, Goldman Sachs analysts, led by Eric Sheridan, reaffirmed their strong endorsement for Uber Technologies Inc . (NYSE:UBER), maintaining a Conviction Buy rating and a steadfast price target of $110.00. The stock, currently trading at $90.41, has shown remarkable momentum with a 49.88% gain year-to-date and is trading near its 52-week high of $92.17. According to InvestingPro data, this prominent player in the Ground Transportation industry has demonstrated strong financial health with an overall score of GREAT. This endorsement follows Uber’s GO-GET 2025 event, which showcased a series of updates primarily focused on affordability across its services.

The event highlighted Uber’s strategic enhancements, including more cost-effective options for Mobility through features like Commute Alerts and Price Lock Pass. These initiatives come as the company maintains strong financial performance, with revenue growing at 17.6% and generating $7.8 billion in free cash flow over the last twelve months. Delivery services are set to become more affordable as well, with proactive price comparison and substitution recommendations, exemplified by the Uber Eats Savings Slider. Additionally, the company is expanding the benefits for Uber One members, offering 10% back in credits for using Uber Rent or taking Lime rides through the app, as well as introducing the first Uber One Member Days.

In a significant technological leap, Uber has announced a partnership with Volkswagen (ETR:VOWG_p) to introduce the first shared autonomous ride. The fully electric, fully autonomous ID. Buzz AD is slated to hit the streets of Los Angeles in early 2026. These initiatives are part of Uber’s broader platform strategy designed to increase adoption, usage frequency, and customer retention by addressing common pain points, including cost and usability.

Goldman Sachs’ continued support for Uber’s stock reflects confidence in the company’s ability to enhance its platform and services effectively. The firm’s analysts believe these updates align with Uber’s long-term goals to improve the customer experience and drive growth, justifying the maintained price target of $110.00 for the next 12 months. With analyst targets ranging from $76 to $115, and a strong consensus recommendation of 1.57 (Buy), the stock continues to attract institutional interest. For deeper insights into Uber’s valuation and growth prospects, including 13 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Uber Technologies announced its first-quarter earnings for 2025, which showed a mixed yet solid performance. The company’s earnings before interest, taxes, depreciation, and amortization slightly exceeded consensus estimates, although gross bookings fell slightly short. DA Davidson raised the stock price target for Uber to $98 from $80, maintaining a Buy rating, citing stable trip growth in the Mobility segment. Additionally, Uber revealed plans to offer $1 billion in exchangeable senior notes due in 2028, with potential additional notes depending on market conditions. The proceeds are intended for general corporate purposes, with no specific allocations yet determined.

Uber has also teamed up with iFood in Brazil to integrate ride-hailing and delivery services, enhancing user convenience by allowing access to both platforms within a single app. This partnership is set to begin in select Brazilian cities in 2025, with a nationwide rollout planned later. Furthermore, Evercore ISI maintained its Outperform rating for Uber, highlighting new service introductions like Price Lock and Prepaid Pass as valuable enhancements. Lastly, Uber announced new affordable travel options, including shared fixed-route rides and expanded membership passes, aimed at broadening its user base amid economic uncertainty.

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