Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Wednesday, Jefferies maintained a Buy rating on Uber Technologies Inc . (NYSE:UBER) and increased the company’s price target from $90.00 to $100.00. The adjustment reflects confidence in the company’s growth trajectory and incremental margins. Trading near its 52-week high of $87, InvestingPro data shows the stock has delivered an impressive 42% return year-to-date. The firm’s analysis indicates that Uber’s performance remains robust, despite its Mobility Bookings not meeting the highest expectations, though technical indicators suggest the stock is currently overbought.
The research firm highlighted Uber’s ongoing efforts to expand its autonomous vehicle (AV) partnerships, which now number 18 globally. This expansion is seen as a strategic move to reinforce Uber’s position as a preferred platform and is anticipated to contribute to its total addressable market (TAM) growth, especially in low-density areas. As a prominent player in the Ground Transportation industry with a market capitalization of $175.33 billion, Uber has maintained strong revenue growth of approximately 18% over the last twelve months.
Jefferies’ revised price target and sustained Buy rating are based on an optimistic outlook for Uber’s earnings before interest, taxes, depreciation, and amortization (EBITDA) growth, which is viewed as leading among its peers. With EBITDA reaching $3.536 billion and operating with a moderate level of debt, the company has demonstrated strong financial performance. The firm underscored Uber’s potential for increased profitability and market dominance with its continued investments and partnerships in the AV space. Get deeper insights into Uber’s financial health and growth potential with InvestingPro, which offers exclusive analysis and 13 additional ProTips for informed investment decisions.
The endorsement from Jefferies comes at a time when Uber continues to diversify its offerings and strengthen its market position through strategic partnerships and technological advancements. The company’s focus on innovation and expansion into new market segments is expected to drive future growth and investor confidence, supported by its strong five-year track record and current profitability.
In summary, Jefferies’ updated valuation of Uber stock reflects a positive stance on the company’s financial health and strategic initiatives. The research firm reiterated Uber as its top large-cap pick, signaling strong expectations for the company’s performance in the near future.
In other recent news, Uber Technologies Inc. reported its first-quarter 2025 earnings, revealing a significant earnings per share (EPS) of $0.83, which exceeded the forecast of $0.51. However, the company’s revenue was slightly below expectations, coming in at $11.53 billion compared to the anticipated $11.62 billion. Despite this revenue miss, Uber achieved a record adjusted EBITDA of $1.9 billion, reflecting a 35% year-over-year increase. The company also reported a free cash flow of $2.3 billion, highlighting strong financial performance in its mobility and delivery segments. Uber announced the acquisition of Trendy Algo to bolster its growth in Turkey, alongside partnerships with Waymo and OpenTable, among others. Analysts noted the company’s focus on margin improvement and its commitment to ongoing top-line growth. While the stock experienced a decline in pre-market trading, Uber’s future EPS forecasts suggest a gradual increase in the coming quarters. The company’s leadership remains focused on operational efficiency and exploring growth opportunities, including autonomous vehicle partnerships and international expansion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.