Uber stock price target raised to $117 from $115 at UBS on growth trends

Published 07/08/2025, 11:46
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Investing.com - UBS raised its price target on Uber Inc. (NYSE:UBER) to $117.00 from $115.00 while maintaining a Buy rating, citing stronger-than-anticipated fundamental growth indicators in both mobility and delivery segments. The ride-hailing giant, now valued at $186.57 billion, has demonstrated robust growth with revenue increasing 18.15% over the last twelve months. According to InvestingPro analysis, Uber is currently trading near its Fair Value, with 8 key insights available to subscribers.

The firm noted that Uber’s mobility business showed steady trip growth quarter-over-quarter, with July performing even better. UBS explained that the topline growth miss was due to Uber passing lower insurance cost benefits to consumers rather than facing competitive pressures or losing market share. The company’s financial health remains strong, with InvestingPro data showing a healthy P/E ratio of 15.18 and substantial EBITDA of $5.23 billion.

In the delivery segment, UBS observed that trip growth accelerated year-over-year in the second quarter of 2025, with favorable pricing trends. These improvements led UBS to increase its consolidated adjusted EBITDA estimates for 2026 and 2027 by approximately 2% each.

UBS views Uber as a "multi-platform, steady mid-term compounder" and maintains its preference for Uber over DoorDash (NASDAQ:DASH) and Lyft (NASDAQ:LYFT), citing a compelling 2.7x upside/downside skew. The firm believes robotaxi competition risks from Waymo and Tesla (NASDAQ:TSLA) remain steady through 2026.

The research note also highlighted Uber’s surprise $20 billion buyback program and the lower likelihood of capital being used for robotaxi fleet expansion, which UBS believes makes a stronger case for broadening Uber’s investor base. With analyst targets ranging from $76 to $150 and a strong consensus recommendation, Uber presents an intriguing investment case. Dive deeper into Uber’s comprehensive analysis with InvestingPro’s detailed research report, available alongside 1,400+ other top stocks.

In other recent news, Uber Technologies Inc . reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.63, slightly above the forecasted $0.62, resulting in a 1.61% positive surprise. Revenue also exceeded predictions, reaching $12.7 billion compared to the expected $12.47 billion, marking a 1.84% surprise. Despite the positive earnings, Uber’s stock experienced a slight dip in premarket trading. In terms of analyst activity, BMO Capital raised its price target on Uber to $113, citing strong delivery growth that offset lower performance in the Mobility and Freight segments. Wells Fargo (NYSE:WFC) adjusted its price target to $119, highlighting positive developments in Uber’s partnership with Waymo in Austin. BofA Securities maintained its Buy rating with a $115 target, noting strong overall growth and stable user engagement. BTIG also reiterated a Buy rating with a $100 target, emphasizing ongoing strength in delivery services and margin expansion.

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