Uber stock price target cut to $88 at TD Cowen

Published 08/04/2025, 16:24
© Reuters.

On Tuesday, TD Cowen's analysis led to a slight adjustment in Uber Inc.'s (NYSE:UBER) financial outlook, with the firm setting a new price target of $88, down from $90, while still supporting a Buy rating for the ride-hailing company's shares. Currently trading at $67.86, Uber's stock sits within a broader analyst target range of $68 to $115. According to InvestingPro data, 4 analysts have recently revised their earnings expectations upward for the upcoming period. The revision was attributed to anticipated macroeconomic challenges, even as the analyst projected robust first-quarter results for the year 2025.

The analyst at TD Cowen anticipates that Uber's gross bookings (GBs) will reach $43.0 billion for the first quarter of 2025, marking a year-over-year increase of 14.2%. This forecast aligns with the consensus and falls within the management's previously stated range of $42.0 billion to $43.5 billion. The company has demonstrated strong momentum, with revenue growing at 17.96% over the last twelve months to $43.98 billion. For deeper insights into Uber's growth metrics and 12 additional ProTips, consider exploring InvestingPro. The expected growth is believed to be fueled by the continued strength in both the Mobility and Delivery segments of Uber's business.

Moreover, the company's EBITDA (earnings before interest, taxes, depreciation, and amortization) is projected to grow by 31.6% compared to the same period last year, building on its current EBITDA of $3.536 billion. InvestingPro's comprehensive analysis shows Uber maintains a "GREAT" overall financial health score, suggesting strong operational efficiency. This growth rate is near the midpoint of management's guidance and is supported by several factors, including cost efficiencies, increased engagement across Uber's platform, and the growth of advertising revenue.

Despite the positive outlook on these metrics, the analyst has made a slight downward revision to the estimates, citing a softening in consumer sentiment. This cautionary stance reflects broader concerns about the economic environment and its potential impact on consumer behavior.

In summary, while TD Cowen has trimmed its price target for Uber to $88 from $90, the firm maintains a positive outlook on the stock with a Buy rating. This position is supported by expectations of solid first-quarter performance, underpinned by the company's operational strengths and strategic initiatives, despite the need to adjust for macroeconomic headwinds. Investors should note that Uber's next earnings report is scheduled for April 30, 2025, providing an important catalyst for the stock's near-term performance.

In other recent news, Uber Technologies Inc . has been the focus of several notable developments. Analysts at Evercore ISI reiterated their Outperform rating for Uber, maintaining a $115 price target, reflecting confidence in the company's strategic partnerships and innovation in autonomous vehicle technology. Similarly, Bernstein analysts upheld their Outperform rating with a $95 price target, emphasizing the significance of 2025 for Uber's growth prospects and highlighting critical steps for the company to address ongoing challenges.

In a strategic move to enhance its delivery services, Uber Eats has partnered with Coco Robotics to introduce robot delivery operations in Miami, following successful implementation in Los Angeles. This collaboration aims to provide emission-free deliveries, furthering Uber's commitment to sustainable practices. Additionally, Uber Eats has expanded its offerings by teaming up with Petco to deliver pet supplies across the contiguous United States, providing a convenient option for pet owners to access a wide range of products.

Moreover, Uber has expanded its shuttle services at New York's JFK airport, introducing new routes and announcing plans to launch similar services at Boston Logan International Airport. These initiatives underscore Uber's ongoing efforts to diversify its services and improve customer convenience in urban transportation and delivery sectors.

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

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