Ride-hailing and delivery giant Uber Technologies (UBER) hit a new 52-week high of $97.12 on Monday, buoyed by bullish comments from Wells Fargo analyst Ken Gawrelski. The Top analyst reaffirmed his Buy rating and raised the price target to $120 (24.1% upside) from $100, citing Uber’s robust growth potential and market expansion moves.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Gawrelski expects Uber to benefit from high mobility booking volumes, particularly in the second half of the year. Also, he believes Uber can maintain steady demand for rides by offering more affordable options and growing its presence in less dense regions.
He also noted that while Uber Eats faces slight softness in daily active users, Uber’s broader focus on growth initiatives should drive top-line growth.
Strategic Expansion Fuels Uber’s Rise
UBER stock has gained over 48% over the past three months, driven by robust earnings and a growing delivery footprint.
In recent strategic moves, Uber has expanded its grocery delivery service, adding regional supermarket chains like Big Y and King Kullen to its platform. This taps into rising demand for convenience and positions Uber as a key player in the delivery space.
Moreover, Uber launched self-driving rides in Atlanta through its partnership with Waymo, marking its second major autonomous market after Austin. This rollout reflects Uber’s commitment to autonomous mobility, while Waymo continues to scale its fleet and expand into new cities.
Is UBER Stock a Buy?
Turning to Wall Street, UBER stock has a Strong Buy consensus rating based on 30 Buys and four Holds assigned in the last three months. At $99.81, the average Uber price target implies a 3.24% upside potential.
