Analyst Nikhil Devnani of Bernstein maintained a Buy rating on Uber Technologies (UBER – Research Report), retaining the price target of $95.00.
Nikhil Devnani has given his Buy rating due to a combination of factors that suggest a positive outlook for Uber Technologies. One of the main reasons is the anticipated growth in Uber’s Mobility and Delivery segments, with expectations of 20% and 18% growth respectively. This growth is supported by Uber’s strategic moves, including a suburban push and new product initiatives, which are expected to maintain strong Gross Bookings growth despite potential macroeconomic risks.
Another significant factor is Uber’s strategic advancements in the Autonomous Vehicles (AV) sector. The company is expected to benefit from partnerships with Waymo and smaller AV players, which could enhance utilization rates and market incrementality. These developments are seen as crucial steps in regaining control over the AV narrative and defending Uber’s terminal value. Additionally, the potential for increased capital returns further supports the positive risk/reward profile at the current stock price.
UBER’s price has also changed slightly for the past six months – from $75.160 to $72.860, which is a -3.06% drop .