In a report released today, Justin Post from Bank of America Securities reiterated a Buy rating on Uber Technologies, with a price target of $115.00.
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Justin Post has given his Buy rating due to a combination of factors that suggest positive growth and strategic advancements for Uber Technologies. One significant factor is the recent legislative change that exempts tips from federal income tax, potentially increasing Uber drivers’ earnings by approximately 2.5%. This tax benefit could enhance driver supply, indirectly supporting Uber’s take rates.
Additionally, Uber’s strategic partnership with Moove, which is raising substantial funds to finance autonomous vehicles (AVs), indicates a promising future in the AV market. Data also shows an acceleration in Uber’s bookings growth, which is a positive indicator for the company’s financial health. Furthermore, the price objective for Uber’s stock has been raised to $115, reflecting a higher free cash flow multiple and optimism about Uber’s global AV partnerships and strong bookings growth. These elements collectively support a Buy rating for Uber Technologies.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C. According to TipRanks, Post has an average return of 23.4% and a 69.96% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $120.00 price target.