KeyBanc maintains Uber stock Overweight rating, $85 target

On Thursday, KeyBanc Capital Markets maintained its Overweight rating on Uber Technologies Inc . (NYSE: NYSE:UBER) with a price target of $85.00. The firm’s analyst, Justin Patterson, responded to Uber’s recent fourth-quarter results, which led to an 8% drop in the company’s stock price, compared to no change in the NASDAQ index on the same day. Patterson attributed the decline to a bookings miss driven by foreign exchange rates (FX) but emphasized that the company’s long-term earnings before interest, taxes, depreciation, and amortization (EBITDA) outlook remains solid. According to InvestingPro data, Uber’s EBITDA reached $3.56 billion in the last twelve months, with the company maintaining a "GOOD" overall financial health score.

Patterson highlighted the potential of Uber One Memberships and the company’s expansion into smaller markets as key factors that could sustain bookings growth and continue to build EBITDA and free cash flow (FCF). Despite the immediate negative market reaction, Patterson sees the 2026 financial targets as within reach and considers the current risk/reward profile of Uber’s shares to be attractive, trading at 12.3 times the projected 2026 enterprise value to EBITDA ratio. InvestingPro analysis shows strong revenue growth of 18% over the last twelve months, with analysts projecting 15% growth for the upcoming year. Get access to 8 more exclusive InvestingPro Tips and comprehensive valuation metrics with an InvestingPro subscription.

The analyst’s confidence in Uber is further underscored by the assessment that nothing in the fourth-quarter results fundamentally alters the investment thesis for the ride-hailing giant. Patterson sees autonomous vehicles (AVs) and FX as temporary challenges that have caused the stock to fluctuate, yet the core business and future prospects remain on track.

KeyBanc’s maintained price target of $85.00 is based on a valuation of 15.1 times the estimated 2026 enterprise value to EBITDA ratio, indicating a belief in the company’s growth potential over the next few years. Uber’s stock performance following the fourth-quarter results reflects investor reaction to short-term factors, while analysts like Patterson from KeyBanc focus on the company’s ability to meet its long-term financial goals.

In other recent news, Uber Inc. has seen a range of responses from financial analysts following its latest earnings report. Piper Sandler reduced its price target for Uber from $82 to $80, citing mixed financial results and potential challenges posed by foreign exchange headwinds and autonomous vehicle strategies. However, the firm maintained an Overweight rating, indicating confidence in Uber’s position within the Gig Economy.

Meanwhile, Needham reiterated its Buy rating and a steady price target of $90. The firm noted Uber’s strategic initiatives, particularly its focus on affordability in its core services, and increased their adjusted EBITDA estimates for the ride-hailing giant. Citi also maintained a Buy rating but reduced its price target from $98 to $92, acknowledging Uber’s growth in various performance metrics and potential for future benefits.

On the other hand, Wolfe Research cut its price target from $92 to $80, highlighting Uber’s aggressive spending focused on top-line growth. Despite this, the firm retained an Outperform rating, expressing confidence in Uber’s growth trajectory and financial performance. Lastly, BofA Securities raised its price target from $93 to $95, citing strong growth in bookings and revenue figures, which surpassed Wall Street’s expectations.

These recent developments suggest a diverse range of perspectives on Uber’s financial performance and strategic direction. Despite varying price targets, analysts remain largely optimistic about Uber’s potential, reflecting the company’s robust growth and strategic initiatives.

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