Street Calls of the Week
TD Cowen also forecasts a significant rise in Uber’s EBITDA, projecting a 44.5% year-over-year increase. This projection is near the upper end of the guidance given by Uber’s management. The anticipated growth in earnings before interest, taxes, depreciation, and amortization is supported by several factors, including cost optimization measures, increased cross-platform user engagement, and growing advertising revenue. Current EBITDA stands at $3.45 billion, with the company generating impressive free cash flow of nearly $6 billion over the last twelve months.The analysts have made slight adjustments to their estimates without altering their revenue and EBITDA forecasts. The price target for Uber’s stock remains steady at $90.00, signaling the firm’s continued confidence in the ride-hailing and delivery giant’s financial prospects and operational performance. Discover more detailed insights and 10+ additional ProTips about Uber’s valuation and growth potential with InvestingPro’s comprehensive research report.
The firm’s expectations for the fourth quarter are aligned with consensus estimates, predicting Gross Bookings (GBs) to reach $43.5 billion, marking a 15.8% increase year-over-year. This figure sits comfortably within the guidance range provided by Uber’s management, which is between $42.75 billion and $44.25 billion. The growth is believed to be fueled by continued strength in both the Mobility and Delivery segments of Uber’s business. As a prominent player in the Ground Transportation industry, Uber has achieved remarkable financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis system.
TD Cowen also forecasts a significant rise in Uber’s EBITDA, projecting a 44.5% year-over-year increase. This projection is near the upper end of the guidance given by Uber’s management. The anticipated growth in earnings before interest, taxes, depreciation, and amortization is supported by several factors, including cost optimization measures, increased cross-platform user engagement, and growing advertising revenue.
The analysts have made slight adjustments to their estimates without altering their revenue and EBITDA forecasts. The price target for Uber’s stock remains steady at $90.00, signaling the firm’s continued confidence in the ride-hailing and delivery giant’s financial prospects and operational performance.
In other recent news, Uber Technologies Inc . (NYSE:UBER) has seen several adjustments to its stock price target. BofA Securities lowered its target from $96 to $93, yet maintained a Buy rating, while Piper Sandler reduced its target from $98 to $82, keeping an Overweight rating. On the other hand, Cantor Fitzgerald raised its price target for Uber from $75 to $80, maintaining an Overweight rating, and Needham held its Buy rating, with a price target of $90.
These adjustments come amidst Uber’s strategic moves, such as expanding its grocery delivery services through a partnership with Wegmans Food Markets, Inc., and initiating a collaboration with Nvidia Corp (NASDAQ:NVDA) to advance autonomous driving technology. Additionally, Delta Air Lines (NYSE:DAL) switched its partnership from Lyft (NASDAQ:LYFT) to Uber, offering SkyMiles loyalty program customers the chance to earn miles through Uber rides and deliveries.
Moreover, Uber experienced a regulatory development as the New York City Taxi and Limousine Commission retracted a proposed rule change that would require taxi and rideshare drivers to have coverage from a "solvent and responsible" insurance carrier. This decision followed Uber’s warning that the requirement could potentially leave thousands of drivers uninsured. These are recent developments in Uber’s strategic efforts to expand markets, improve profitability, and boost investor returns.
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