In a report released today, Justin Post from Bank of America Securities reiterated a Buy rating on Uber Technologies (UBER – Research Report), with a price target of $95.00.
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Justin Post has given his Buy rating due to a combination of factors, despite the recent FTC lawsuit against Uber regarding its Uber One subscription policies. The lawsuit, which accuses Uber of deceptive billing and cancellation practices, is not expected to significantly impact Uber’s financials. This is because Uber One members, who have grown substantially to 30 million by the end of 2024, continue to find value in the service.
Uber’s subscription revenue, which could account for approximately 5% of total revenue, is seen as stable with minimal risk of churn. Additionally, Uber One members contribute significantly to the company’s delivery and gross bookings, indicating strong engagement. Furthermore, while regulatory scrutiny remains a concern, the potential for less aggressive oversight in certain areas could benefit Uber. Overall, the gig economy, where Uber operates, is viewed favorably within the broader internet sector, supporting the Buy rating.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Post has an average return of 20.7% and a 62.22% success rate on recommended stocks.
In another report released on April 17, Morgan Stanley also maintained a Buy rating on the stock with a $90.00 price target.
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