Wells Fargo trims Uber stock price target to $119 on investment outlook

Published 07/08/2025, 11:40
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Investing.com - Wells Fargo (NYSE:WFC) has lowered its price target on Uber Inc. (NYSE:UBER) to $119.00 from $120.00 while maintaining an Overweight rating on the stock. Currently trading at $89.22, Uber maintains a "GREAT" financial health score according to InvestingPro analysis, with analyst targets ranging from $76 to $150.

The firm cited encouraging early results from Uber’s Austin partnership with Waymo, noting that vehicle deployments are ahead of initial forecasts, which supports further expansion of the operating fleet and service area. Wells Fargo observed that Waymo volumes appear to be additive to Uber’s business in Austin. This expansion aligns with Uber’s strong revenue growth of 18.15% over the last twelve months.

The Atlanta market remains in early stages, but vehicle utilization is tracking similarly to Austin’s performance during the initial 4-5 weeks, according to the research note. The timing of new market partnerships beyond these cities remains less clear. For deeper insights into Uber’s expansion strategy and financial outlook, InvestingPro subscribers can access comprehensive analysis and 8 additional key ProTips.

Wells Fargo has raised its 2025 and 2026 gross bookings estimates by 1% and 3% respectively, with increases of 3% and 7% in Delivery gross bookings offsetting slight 1% declines in Mobility gross bookings. The firm’s model now incorporates Trendyol Go starting in the third quarter of 2025, which is expected to contribute approximately $620 million in gross bookings.

The slight price target reduction reflects Wells Fargo’s reduced 2026 EBITDA estimate, down 1% due to elevated investments. The new $119 target is based on 20 times the firm’s 2027 estimated free cash flow per share of $5.97.

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, and reported revenue of $12.7 billion, exceeding predictions of $12.47 billion. Analysts have responded to Uber’s performance with several updates. BMO Capital raised its price target for Uber to $113, highlighting strong delivery growth that compensated for lower performance in other segments. BofA Securities maintained a Buy rating with a $115 price target, citing strong overall growth and stable bookings. BTIG also reiterated a Buy rating with a $100 target, noting ongoing strength in delivery services and margin expansion. These developments reflect a positive outlook among analysts regarding Uber’s recent financial performance.

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