An analyst at BofA has raised the price target for Uber to $96 from $95. The Buy rating on the stock was maintained. This adjustment occurs ahead of the company's earnings report scheduled for May 7.
For the first quarter, the analyst increased estimates for Uber's bookings, revenue, and EBITDA. The new estimates are $43.5 billion, $11.73 billion, and $1.89 billion, respectively, surpassing consensus expectations.
Delivery services remained stable during the quarter, according to the firm. The U.S. Mobility segment may have experienced minor challenges due to decreased airport travel. Growth in New Verticals likely offset this impact. Discussions regarding the launch of the Austin Waymo project are anticipated, with positive insights expected during the earnings call.
Based on one-year price targets from 41 analysts, the average target price for Uber Technologies Inc is $89.03. The high estimate is $115.00, and the low estimate is $68.00. The average target suggests an upside of 5.64% from the current price of $84.28. More detailed estimate data can be found on the Uber Technologies Inc (UBER) Forecast page.
A consensus recommendation from 53 brokerage firms places Uber Technologies Inc's average brokerage recommendation at 1.9. This indicates Outperform status on a scale where 1 is Strong Buy and 5 is Sell.
According to GuruFocus estimates, the estimated GF Value for Uber Technologies Inc in one year is $73.16. This suggests a downside of 13.19% from the current price of $84.28. GF Value is GuruFocus' estimate of fair value based on historical multiples, past business growth, and future performance estimates. More detailed data is available on the Uber Technologies Inc (UBER) Summary page.
Uber Technologies Inc reported accelerated growth in audience, trips, and gross bookings that exceeded internal expectations. The Uber One membership program added 5 million members during the quarter, bringing the total to 30 million, a nearly 60% year-over-year increase.
Adjusted EBITDA grew 60% year over year, exceeding the company's high 30% to 40% CAGR target. Uber Technologies Inc achieved an annual free cash flow as a percentage of EBITDA of 106%, surpassing their target of 90%-plus.
The company maintains strategic investments and partnerships in the autonomous vehicle (AV) space, including a collaboration with Waymo in Austin. However, the commercialization of autonomous vehicle technology is expected to take longer than previously anticipated.
Foreign exchange headwinds impact top-line growth due to currency depreciation in markets such as Argentina, Mexico, and Brazil. Higher insurance costs persist, partially offsetting benefits from supply incentives and operating cost leverage. The current scale of AV deployments remains very small, limiting immediate impact on Uber Technologies Inc's overall business. A complete transcript of the earnings call is available at the full earnings call transcript.
