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On Thursday, TD Cowen reaffirmed its confidence in Uber Technologies Inc . (NYSE: NYSE:UBER), raising the price target on the company’s shares from $88.00 to $96.00 while maintaining a Buy rating. This aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong analyst consensus of 1.56 (Buy), with price targets ranging from $68 to $115. The adjustment follows Uber’s first-quarter results, which demonstrated solid performance, albeit with Gross Bookings (GBs) slightly missing analyst and consensus estimates. This was primarily due to lower-than-anticipated Mobility GBs, which were somewhat balanced out by stronger Delivery GBs.
Revenue for the quarter was reported to align with TD Cowen’s estimates and was only marginally below consensus expectations by 0.8%. More impressively, Uber’s EBITDA surpassed consensus projections by 1%, attributed to better than expected margins. According to InvestingPro data, the company has maintained strong momentum with 17.96% revenue growth over the last twelve months, while achieving a healthy gross profit margin of 33.19%. Looking ahead, the guidance provided by Uber for second-quarter GBs and EBITDA was favorable, exceeding both TD Cowen’s and consensus pre-report estimates at the midpoints.
In response to these findings, TD Cowen has revised its estimates and updated its discounted cash flow (DCF)-based price target to $96, up from the previous $88. This new price target reflects the firm’s ongoing endorsement of Uber’s stock.
TD Cowen’s Buy rating is grounded in Uber’s unique position within the market, bolstered by its global scale and leadership across diverse transportation and logistics services coordinated via its app. The firm believes that Uber’s Mobility and Delivery platforms are well placed to continue capturing and holding market share in numerous rapidly expanding regions and sectors. The expectation is that this strategic positioning will enable Uber to sustain a swift pace of growth in both Gross Bookings and Revenue. With a market capitalization of $173.16 billion and a P/E ratio of 14.21, Uber currently trades near its InvestingPro Fair Value. For deeper insights into Uber’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial metrics, check out the full company analysis on InvestingPro.
In other recent news, Uber Inc. has caught the attention of several analyst firms following its first-quarter performance. RBC Capital Markets increased its price target for Uber to $94, citing strong customer growth and robust profit margins. Cantor Fitzgerald also raised its target to $96, despite a slight miss in gross bookings, noting Uber’s solid EBITDA performance and strategic advancements in autonomous vehicles. Meanwhile, Truist Securities maintained its Buy rating with a $92 target, acknowledging Uber’s effective navigation of Mobility and Delivery sectors amid challenges. Bernstein reaffirmed its Outperform rating and set a $95 price target, highlighting stable Mobility performance and increased Delivery volumes. Susquehanna took a more optimistic stance by raising the price target to $100, driven by revised EBITDA and EPS forecasts. These developments reflect a broad consensus on Uber’s growth potential, particularly with its strategic moves in autonomous vehicle technology and operational leverage. Overall, analysts express confidence in Uber’s trajectory, with a focus on its ability to maintain growth and adapt to market conditions.
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