Uber stock price target raised to $100 by Oppenheimer

On Wednesday, Oppenheimer analysts raised the price target for Uber Inc. (NYSE: UBER) shares to $100 from the previous $85, while maintaining an Outperform rating. The increase reflects a growing optimism in the company’s fundamentals and a lesser focus on potential challenges from RoboTaxi services. According to InvestingPro data, Uber has received positive attention from analysts, with 4 analysts recently revising their earnings estimates upward. The company’s analyst consensus rating stands at 1.53 (Strong Buy), with price targets ranging from $68 to $115.

Analysts at Oppenheimer noted that Uber shares have risen by 28% year-to-date, outperforming the NASDAQ’s 2% gain. This uptick is attributed to a shift in investor sentiment, which now appears to be more focused on Uber’s core business rather than the anticipated competition from autonomous vehicle services. The analyst’s commentary highlighted several factors contributing to this perspective shift. InvestingPro data confirms this strong performance, showing a 19.3% return in the past week alone, with the company maintaining an impressive "GREAT" overall Financial Health score.

Firstly, there has been a lack of negative investor reaction to the expansion of new Waymo markets and Tesla (NASDAQ:TSLA)’s announcement of a RoboTaxi service in Austin coming in June. Secondly, investors have shown resilience by buying Uber stock even after the company missed foreign exchange guidance, resulting in a 21% increase in share price post-earnings, compared to a flat performance by the NASDAQ over the same period.

Additionally, the announcements of partnerships between BYD (SZ:002594) and Mobileye to develop autonomous vehicles are seen as evidence that the market for RoboTaxi services will be competitive, with multiple vendors, which could mitigate the risk to Uber’s business. Furthermore, the analysis pointed out that Lyft (NASDAQ:LYFT), a direct competitor, has had to offer discounts to maintain market share, indicating a consumer preference for Uber. In January, Lyft reported an increase in rides but at lower prices.

The new price target of $100 is based on a 19x multiple of Uber’s projected 2026 EBITDA, compared to a 21x multiple for DoorDash (NASDAQ:DASH). This valuation reflects confidence in Uber’s growth prospects and its ability to navigate the evolving landscape of the ride-hailing and autonomous driving markets. With a current market capitalization of $162 billion, revenue growth of 18% year-over-year, and a P/E ratio of 16.4x, Uber demonstrates strong fundamental metrics. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive Fair Value analysis for Uber and 1,400+ other stocks.

In other recent news, Uber Technologies Inc . (NYSE:UBER) has seen a flurry of activity from analysts and board members alike. Loop Capital Markets recently lifted its price target for Uber from $86 to $89, maintaining a Buy rating on the company’s shares. Analyst Rob Sanderson cited the potential impact of autonomous vehicle technology and Uber’s expected strong EBITDA growth as key factors influencing this decision.

On the other hand, DA Davidson reduced its price target for Uber to $80 from $84, despite acknowledging strong fourth-quarter financial results, while KeyBanc Capital Markets maintained an Overweight rating on Uber with an $85 price target. Both firms noted the potential of foreign exchange rates to affect bookings but emphasized the solid long-term EBITDA outlook.

In board news, Uber announced that board member Wan Ling Martello will not seek re-election at the upcoming Annual Meeting of Shareholders. Martello’s departure was not due to disagreements with the company’s operations, policies, or practices. Meanwhile, Bill Ackman’s Pershing Square Capital Management disclosed a substantial position in Uber, praising the company’s transformation under CEO Dara Khosrowshahi. These are the recent developments that have been shaping the narrative around Uber.

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