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Investing.com - Needham raised its price target on Uber Inc. (NYSE:UBER) to $109.00 from $100.00 on Monday, while maintaining a Buy rating on the ride-sharing company. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $76 to $120, with the stock currently trading near its 52-week high of $97.72.
The price target increase comes as Needham observed pricing moving slightly higher quarter-over-quarter for both Uber and Lyft (NASDAQ:LYFT). This pricing strength, combined with healthy demand indicators, reinforces the firm’s confidence in its second-quarter estimates for Uber.
Needham noted that Lyft’s pricing advantage and Uber’s wait time advantage are currently at recent highs, highlighting competitive dynamics in the ride-sharing market.
The firm’s higher price target reflects an increased target multiple for Uber, though still at a discount to its current trading multiple. Needham believes Uber’s near-term multiple will likely be influenced by upcoming autonomous vehicle developments.
Needham also pointed to Uber’s partnership with May Mobility launching this year as a positive development, adding another technology provider to the rideshare ecosystem, while noting that Tesla (NASDAQ:TSLA)’s expanding robotaxi footprint and Waymo’s potential standalone launches in Miami and DC could impact Uber’s valuation multiple.
In other recent news, Uber Technologies Inc . has announced several significant developments. The company will serve as the official rideshare and on-demand delivery partner for the LA28 Olympic and Paralympic Games, providing transportation and delivery services throughout Los Angeles. In a move to enhance its grocery delivery service, Uber Eats has expanded its offerings by partnering with six regional supermarket chains, including Big Y and King Kullen. This expansion aims to meet regional preferences while complementing existing national partnerships.
Additionally, BofA Securities has raised its price target for Uber to $115, citing potential benefits from the "No Tax on Tips" provision, which could result in substantial tax savings for Uber drivers. Evercore ISI has maintained its Outperform rating on Uber, highlighting favorable driver supply conditions and promising results from Uber’s partnership with Waymo in autonomous vehicle deployment. This partnership, bolstered by Moove’s $1.2 billion financing deal, is expected to support the expansion of Waymo’s fleet in the U.S.
Uber’s collaboration with Alto has been instrumental in transferring insurance liability and reducing costs in the rideshare sector. These developments reflect Uber’s strategic efforts to expand its service offerings and strengthen its market position.
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