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On Thursday, Wedbush Securities adjusted its stance on Uber Technologies Inc . (NYSE: NYSE:UBER), downgrading the company’s stock rating from "Outperform" to "Neutral." Despite the downgrade, the firm raised its price target from $80.00 to $85.00. The revision followed Uber’s first-quarter earnings report, which presented a mix of results and forward-looking guidance that prompted the reevaluation. With a market capitalization of $174.93 billion and trading slightly above InvestingPro’s Fair Value estimate, Uber maintains a "GREAT" overall financial health score.Want deeper insights? InvestingPro offers comprehensive analysis with 12 additional ProTips and a detailed research report for Uber, helping investors make more informed decisions.
Uber’s financial performance in the first quarter showed gross bookings of $32.8 billion, reflecting a year-over-year increase of 13.7%, which aligned with the company’s guidance but fell slightly short of Street estimates by 1%. The adjusted EBITDA for the quarter reached $1.9 billion, boasting a 16.2% margin, slightly surpassing initial expectations and narrowly missing the company’s projected midpoint. The company’s strong execution is reflected in its impressive 17.96% revenue growth over the last twelve months, with a P/E ratio of 15.16.
The growth in mobility gross bookings was noted at 13.5% year-over-year, a figure considered modest compared to estimates. Looking ahead, Uber anticipates gross bookings to grow between 14.5% and 18.3% year-over-year in the next quarter, surpassing the consensus of 14.3%. The forecasted adjusted EBITDA for the upcoming quarter ranges from $2.02 billion to $2.12 billion, compared to Street estimates of $2.04 billion.
Wedbush analysts remarked on the recent performance of Uber’s stock, acknowledging the significant appreciation over the last few years as the company’s business model recovered from the pandemic. They noted that the scale of earnings surpassing estimates has notably decreased, as the company’s performance has begun to meet investor expectations. While recognizing Uber’s management team’s successful track record in driving growth, Wedbush expressed the view that the current understanding of the business and the absence of immediate, clear catalysts may limit the potential for stock price increases in the near term.
In other recent news, Uber Technologies Inc. reported its first-quarter 2025 earnings, revealing a significant earnings per share (EPS) of $0.83, which exceeded forecasts of $0.51, though revenue slightly missed expectations at $11.53 billion compared to the anticipated $11.62 billion. The company achieved a record adjusted EBITDA of $1.9 billion, marking a 35% year-over-year increase, with strong growth in its mobility and delivery segments. Meanwhile, Goldman Sachs raised its price target for Uber to $110, maintaining a Conviction Buy rating, citing Uber’s robust first-quarter performance and strategic advancements in autonomous vehicle partnerships.
Jefferies also increased Uber’s price target to $100, up from $90, while maintaining a Buy rating, highlighting confidence in Uber’s growth trajectory and incremental margins. Barclays (LON:BARC) and KeyBanc Capital Markets both adjusted their price targets for Uber, with Barclays raising it to $97 and KeyBanc to $90, both maintaining an Overweight rating. These firms noted Uber’s strategic moves in the autonomous vehicle sector and its strong financial performance as key factors in their assessments.
Uber’s strategic initiatives in the autonomous vehicle space have been a focal point, with the company announcing multiple new or expanded partnerships, aligning with its strategy to position itself as a network operator in a future that could see a mix of human-driven and autonomous vehicles. The company’s delivery segment also continues to perform well, with increased merchant relationships and order frequency contributing to its growth. Despite some skepticism about the pace of autonomous vehicle development, analysts remain optimistic about Uber’s long-term prospects in this area.
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