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On Monday, Oppenheimer analysts, led by Jason Helfstein, maintained their Outperform rating on Uber Technologies Inc . (NYSE:UBER) with a steadfast price target of $85.00. Currently trading at $66.85, with a market capitalization of $140.77 billion, InvestingPro data shows Uber trading near its Fair Value, suggesting the stock is reasonably priced at current levels. The firm’s analysts highlighted Uber as their top pick, especially as the fourth-quarter results approach, suggesting that recent concerns regarding the development of Robotaxi technology present a compelling purchase opportunity for investors. Despite the risks associated with Robotaxi news, the analysts noted that investor sentiment towards Uber has shown signs of improvement, with Uber’s shares increasing by 11% year-to-date, outpacing the NASDAQ’s 2% gain.
The analysts elaborated that, contrary to the worries surrounding Robotaxi, they view this technology as a potential market expander for Uber. This outlook hinges on the assumption that Tesla, Inc. (NASDAQ:TSLA) will not monopolize the full self-driving market, with companies like Waymo and Mobileye also in the race. InvestingPro analysis reveals strong fundamentals, with revenue growing at 16.7% and the company maintaining profitability over the last twelve months. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription. They predict that the excitement around Tesla’s Robotaxi will diminish unless there are significant advancements in the next 12 to 18 months.
Uber’s current valuation, trading at 13 times its estimated 2026 EBITDA, was deemed reasonable by Oppenheimer. They anticipate that if Uber’s fourth-quarter results align with expectations, particularly in the Mobility sector, the stock is likely to experience an upward trajectory. The $85 price target is based on a 16 times multiple of the projected 2026 EBITDA, which represents a 2% premium over its peers. This premium is justified, according to the analysts, given Uber’s projected growth rate of 11% from 2024 to 2026, which is faster than its competitors. Notably, this growth rate is compared to a 21% discount to DoorDash Inc. (NYSE:NASDAQ:DASH), another player in the mobility and delivery space.
Investors are keeping a close watch on Uber as the company prepares to disclose its fourth-quarter results in just two days, with Oppenheimer’s analysis suggesting a positive outlook for the company’s performance and stock value. Trading at a P/E ratio of 31.48, InvestingPro subscribers can access the comprehensive Pro Research Report, offering deep-dive analysis and actionable insights on Uber’s financial health, valuation metrics, and growth prospects.
In other recent news, Uber Technologies Inc. has been the center of several developments. The company’s upcoming earnings report is being closely watched by investors, with Benchmark maintaining a Hold rating on Uber’s stock. This comes as Uber demonstrates strong revenue growth of 16.7% and profitability over the last twelve months. Analysts from JMP Securities have also kept a Market Perform rating on Uber, citing strong revenue growth and financial health, yet noting increasing competition from Waymo.
Uber has recently filed a lawsuit against a group of law firms and medical clinics, alleging they staged fake car accidents and conducted unnecessary surgeries to exploit New York’s no-fault insurance policies. In the autonomous vehicles sector, Uber is facing potential competition from Waymo’s expansion plans and Tesla’s upcoming robotaxi efforts. These recent developments highlight the rapidly evolving landscape of the ride-hailing industry and the potential impact of autonomous driving technology on companies like Uber.
TD Cowen maintains a Buy rating for Uber, with a $90 target, forecasting a significant rise in the company’s EBITDA. Meanwhile, BofA Securities has reduced its price target from $96 to $93, but still maintains a Buy rating. These are among the latest updates in a dynamic market environment.
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