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Investing.com -- Bank of America raised its price target for Uber (NYSE:UBER) to $115 from $97 per share in a note Tuesday, citing multiple catalysts including driver tax savings, accelerating bookings, and growing autonomous vehicle (AV) momentum.
“Uber remains a top pick for 2025,” BofA analysts wrote, reiterating a Buy rating and noting their revised valuation is based on “24x 2026 FCF (vs. 20x prior) given FANG multiple expansion.”
A key boost is said to come from the Big Beautiful Bill’s No Tax on Tips provision, which includes 1099 gig workers.
“Federal income tax savings will be available even for those who don’t itemize, with a max deduction of $25k,” BofA said.
The firm estimates Uber drivers in the U.S. will earn about $42 billion this year, with $5.7 billion coming from tips. That translates to “~$1.0bn in tax savings for drivers, assuming an 18% avg. tax rate, for a 2.5% pay bump.”
The bank also highlights Uber-backed Moove’s move to raise $1.2 billion to finance autonomous vehicles in partnership with Waymo.
“Moove is one of Uber’s most critical fleet management partners,” analysts noted. While details remain unclear, BofA said the development is “consistent with our view that there will be multiple AV suppliers long-term.”
In addition, the bank stated that “data from Bloomberg Second Measure shows modestly accelerating bookings growth for Uber, up ~140pts vs. 1Q,” with both the Mobility and Delivery segments reportedly showing improvements.
“Optimism on Uber’s AV position can grow,” the analysts wrote, citing over 20 global AV partnerships and signs of Level 4 technology scaling.
They concluded: “Strong bookings growth & Uber One traction suggest subscriber lock in.”