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Investing.com - RBC Capital raised its price target on Uber Inc. (NYSE:UBER) to $100.00 from $94.00 on Thursday, while maintaining an Outperform rating on the ride-hailing and delivery company. Currently trading at $91.42, Uber commands a market capitalization of $190.7 billion and appears slightly overvalued according to InvestingPro Fair Value estimates.
The firm cited positive bias in Uber’s second-quarter performance, noting good key performance indicators in both the Mobility and Delivery segments. The company’s strong execution is reflected in its 18.15% revenue growth and impressive 72% return on equity over the last twelve months. RBC also observed improved competitive positioning in U.S. ride-hailing compared to the previous quarter.
Strong autonomous vehicle (AV) utilization and partner commentary reinforced RBC’s view that Uber is expanding its competitive advantage in the autonomous vehicle space.
RBC highlighted Uber’s newly authorized $20 billion share buyback program as a signal of management’s confidence in the company’s future prospects. The firm has modestly raised its estimates for Uber following the quarter.
The analyst noted some concerns around incremental margins and autonomous vehicle capital intensity that warrant monitoring, but maintained that Uber’s long-term bull case remains intact, supported by "compounding growth as the category leader combined with rising optionality for AVs."
In other recent news, Uber Inc. reported second-quarter results that exceeded Wall Street expectations, with notable performance in both gross bookings and EBITDA. Cantor Fitzgerald reiterated its Overweight rating on the company, highlighting the strong results and setting a price target of $106.00. TD Cowen raised its price target to $108.00, citing record user numbers and increased trip frequency. Truist Securities also increased its price target to $96.00, maintaining a Buy rating and noting the healthy demand in both the Mobility and Delivery segments. Bernstein continued to support Uber with an Outperform rating and a $110.00 price target, emphasizing the strong performance in the Delivery segment. Benchmark, however, maintained a Hold rating, pointing out mixed results across business segments and questioning the behavior of new user cohorts. These developments reflect a range of analyst perspectives on Uber’s recent financial performance and future potential.
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