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On Tuesday, KeyBanc Capital Markets adjusted its outlook on Uber Technologies Inc . (NYSE:UBER), reducing its price target from $85.00 to $80.00 while reaffirming an Overweight rating on the shares. The revision follows observations of changing user patterns within Uber’s services, including a noted decrease in mobility usage. Currently trading at $73.10, Uber maintains a "GREAT" financial health score according to InvestingPro analysis, with analyst targets ranging from $68 to $115.
According to KeyBanc analyst Justin Patterson, there has been a 6% year-over-year decline in the number of ride-sharing users who prefer Uber, dropping to 81%. More notably, the segment of users who frequently use Uber saw an 11% year-over-year decrease to 64%. These figures approach the user preference levels recorded in mid-2023, when 65% of users reported Uber as their primary ride-sharing service. Despite these challenges, Uber has maintained strong revenue growth of 18% over the last twelve months, generating nearly $44 billion in revenue.
On the food delivery front, UberEats also experienced a slight dip in its user base. The service saw a 2% year-over-year drop in the number of consumers who use it as their primary choice for food delivery, now at 17%. The KeyBanc analyst attributes these changes to a combination of macroeconomic factors and potential upcoming pressures on insurance costs.
Patterson’s revised price target of $80.00 is based on a 16.1x multiple of the company’s expected 2026 enterprise value to EBITDA (earnings before interest, taxes, depreciation, and amortization). This adjustment reflects a more conservative growth outlook for Uber, with the firm’s 2025 and 2026 EBITDA estimates reduced by 5% and 12%, respectively. The new EBITDA forecasts are set at $8.23 billion for 2025 and $10.12 billion for 2026. InvestingPro analysis reveals that Uber currently trades at an EV/EBITDA multiple of 40.8x, with additional valuation insights available in the comprehensive Pro Research Report.
Despite the lowered price target, KeyBanc’s Overweight rating suggests that the firm still sees Uber’s stock as a potentially strong performer relative to the market or its sector peers. The rating indicates a belief in the company’s ability to navigate through the current challenges and capitalize on its market position in the long term. As a prominent player in the Ground Transportation industry with a market capitalization of $153 billion, Uber has demonstrated its resilience with a 21% year-to-date return.
In other recent news, Uber Technologies Inc. has been the subject of several analyst updates and strategic developments. BofA Securities maintained a Buy rating for Uber, setting a price target at $95, citing the increasing use of Waymo autonomous vehicles through Uber’s platform in Austin as a positive development. Meanwhile, TD Cowen adjusted its price target for Uber from $90 to $88, maintaining a Buy rating, while projecting strong first-quarter results for 2025, despite anticipated macroeconomic challenges. Evercore ISI reiterated its Outperform rating with a $115 target, highlighting insights from the Ride AI conference that suggest potential growth through partnerships with autonomous vehicle technology providers.
Additionally, Uber has expanded its delivery capabilities through a partnership with Coco Robotics, rolling out robot delivery services in Miami. This initiative, which began in the Wynwood neighborhood and Downtown Miami, is part of a broader strategy to enhance Uber Eats’ delivery efficiency using emission-free robots. Bernstein analysts also maintained an Outperform rating with a $95 target, emphasizing Uber’s prospects in 2025 and outlining a strategic path that includes solid Mobility growth and the integration of autonomous vehicle partners. These developments underscore Uber’s ongoing efforts to innovate and expand its service offerings in both the transportation and delivery sectors.
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