Analyst Nikhil Devnani from Bernstein maintained a Buy rating on Uber Technologies and increased the price target to $115.00 from $110.00.
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Nikhil Devnani has given his Buy rating due to a combination of factors tied to Uber’s valuation, growth outlook, and strategic position in the evolving autonomous vehicle landscape. He notes that despite heightened headlines and competitive noise from players like Waymo, Zoox, and Tesla, Uber’s stock now trades at a discounted multiple relative to its earnings power, suggesting the market is overreacting to near-term AV concerns. He also highlights that Uber’s ongoing investments in its core Mobility and Delivery operations, as well as in autonomous vehicle partnerships, may temporarily constrain incremental margins but are likely to support stronger gross bookings growth and EBITDA outperformance over time.
Devnani emphasizes that, even under fairly aggressive adoption scenarios, current autonomous offerings represent only a small fraction of overall U.S. rideshare volumes, while the total addressable market for ride-hailing continues to expand. He acknowledges that capital expenditures tied to AV agreements are probably underappreciated by consensus, yet still believes Uber can deliver on free cash flow expectations. In his view, the long-term market will remain fragmented among AV players, and Uber’s platform scale and balance-sheet flexibility position it well to benefit from that structure, making the recent pullback a favorable entry point for investors. Overall, he sees the combination of solid fundamentals, manageable AV risk, and attractive valuation as supportive of a Buy recommendation.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UBER in relation to earlier this year.