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On Thursday, Citi analysts, led by Ronald Josey, maintained a Buy rating on Uber Inc. (NYSE:UBER) with a steady price target of $102.00, representing potential upside from the current price of $90.41. The stock has shown remarkable momentum, gaining nearly 50% year-to-date and trading near its 52-week high of $92.17. According to InvestingPro data, analyst targets range from $76 to $115, reflecting strong market confidence in this $189 billion market cap company. The affirmation follows Uber’s annual GO-GET product showcase, where the company unveiled several new products and services designed to enhance affordability, frequency, and convenience for its users.
Uber introduced new Mobility products such as Price Lock, Ride Passes, and Route Share at the event held on Wednesday, which are expected to make over 3 billion commuter trips in 2024 more cost-effective and user-friendly. The company’s strong revenue growth of 17.6% and GREAT financial health score from InvestingPro suggest these initiatives are building on solid fundamentals. Additionally, the company’s Delivery segment now features a Savings Slider that could offer 15-20% savings on grocery lists.
The launch of Uber One Member Days, set to commence on May 16, 2025, is anticipated to drive higher membership adoption and usage. With the company maintaining healthy profitability and operating with moderate debt levels, Citi’s analysts believe that these product innovations are synergistic with Uber’s ongoing investments in expanding into suburban areas and enhancing service frequency as autonomous vehicles (AVs) become more prevalent and as the company’s 30 million-plus Uber One members utilize an increasing array of services.
Josey’s commentary underscores the potential of Uber’s new offerings to solidify its market position. "Bigger picture, we believe these products complement Uber’s investments across newer use cases, including the build-out of Suburbs, and improving frequency as AV scales and its 30M+ Uber One members adopt more services," he stated.
Citi’s reiteration of the Buy rating and the $102 price target reflects confidence in Uber’s strategic direction and its ability to continue growing in the competitive ride-sharing and delivery markets.
In other recent news, Uber Technologies announced a series of strategic developments aimed at enhancing its service offerings and financial outlook. The company revealed plans to offer $1 billion in exchangeable senior notes due in 2028, with potential for an additional $150 million depending on market conditions. This move is intended to support general corporate purposes, including potential strategic investments. Uber also introduced new, cost-effective travel options like shared fixed-route rides and expanded membership passes, designed to appeal to budget-conscious consumers amid economic uncertainty.
Furthermore, Uber is collaborating with Volkswagen (ETR:VOWG_p) to launch a fleet of fully electric autonomous vehicles, the ID. Buzz AD, in Los Angeles by 2026, and is expanding its partnership with Waymo in Austin. In Brazil, Uber has partnered with iFood to integrate ride-hailing and delivery services within each company’s app, aiming to simplify user experiences and boost local business orders. Analysts at Goldman Sachs and Evercore ISI have maintained their positive outlook on Uber, with price targets of $110 and $115, respectively, reflecting confidence in the company’s strategic direction and growth potential. These developments underscore Uber’s commitment to innovation and expansion in both mobility and delivery segments.
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