Piper Sandler raises Uber stock price target to $87

On Tuesday, Piper Sandler maintained an Overweight rating on Uber Technologies Inc . (NYSE: NYSE:UBER), currently trading at $79.42, and raised its price target to $87 from the previous $80. This adjustment follows a recent discussion with Uber’s management that provided clarity on the company’s business model and future expectations. According to InvestingPro data, four analysts have recently revised their earnings estimates upward, with price targets ranging from $68 to $115.

The firm’s analyst, Thomas Champion, revised the company’s EBITDA forecasts upward for the years 2025 and 2026 after reviewing additional details on autonomous vehicles (AVs) shared in Uber’s earnings supplemental materials. Champion noted that factors like timing and capacity utilization could play to Uber’s advantage in the near term. The company’s current EBITDA stands at $3.54 billion, with InvestingPro analysis indicating a "GREAT" overall financial health score.

The revised price target of $87 reflects updated, higher profit forecasts. While concerns about the impact of AVs on growth starting in 2026 persist, the analyst acknowledged that Uber’s management has provided useful data on capacity utilization and their perspective on the AV market’s realities. The adoption of AVs is a critical factor to watch, with the timeline for widespread adoption potentially spanning 5-10 years.

Additionally, the report mentioned the recent news of Bill Ackman’s Pershing Square building a $2 billion stake in Uber, equivalent to 1.4% of the company. Ackman’s investment is seen as a positive counterpoint to concerns related to competition from other companies like Waymo and Tesla (NASDAQ:TSLA) in the AV space. Ackman’s post from February 7th hinted that Pershing Square would soon share more about its strategy regarding Uber.

Champion’s commentary also touched upon the headline risk posed by market announcements from Waymo and Tesla but suggested that Uber’s comments on the subject seem intuitively sensible. The timeline for AV adoption remains a key element for the future, and the analyst’s report reflects a watchful eye on how this will unfold over time. While the stock has shown strong momentum with a 31.66% YTD return, InvestingPro analysis indicates the stock is in overbought territory, suggesting investors should monitor technical indicators carefully. For comprehensive analysis including 12 additional ProTips and detailed valuation metrics, consider accessing the full Pro Research Report.

In other recent news, Uber Technologies Inc. has been the subject of several significant developments. Analysts at Oppenheimer have increased Uber’s stock price target to $100, citing optimism in the company’s fundamentals and a lesser focus on potential challenges from RoboTaxi services. Similarly, Loop Capital Markets has raised its price target for Uber to $89, highlighting the company’s strong earnings and strategic positioning amid the evolving landscape of the transportation sector.

In contrast, DA Davidson has reduced its price target for Uber to $80, despite maintaining a Buy rating on the company’s shares. This adjustment follows Uber’s fourth quarter financial results, which demonstrated a 100 basis point acceleration in Total (EPA:TTEF) FX-Neutral Gross Bookings growth.

In other company news, Uber announced that board member Wan Ling Martello will not seek re-election at the upcoming 2025 Annual Meeting of Shareholders. The company has not disclosed any further details regarding a potential successor or how Martello’s departure will affect the board’s composition.

Lastly, billionaire Bill Ackman’s Pershing Square Capital Management has acquired a substantial position in Uber, praising the company’s transformation into a "highly profitable and cash-generative growth machine" under CEO Dara Khosrowshahi. Ackman’s endorsement and significant investment serve as a strong signal to the market and have generated a positive buzz. These are the recent developments surrounding Uber, as reported by various sources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.