Uber: Durable Growth, Strengthening Fundamentals, and Undervalued Core Support Buy Rating Despite Multiple Compression

Analyst Brian Nowak of Morgan Stanley maintained a Buy rating on Uber Technologies, reducing the price target to $100.00.

Brian Nowak has given his Buy rating due to a combination of factors tied to Uber’s strengthening fundamentals and platform advantages. He highlights that both the Mobility and Delivery segments are growing solidly, with user additions and cohort engagement supporting a multi‑year trajectory of robust free cash flow. Uber’s strategy of offering a range of products at different price points, expanding into smaller U.S. markets and international regions, and leveraging its integrated ecosystem (Mobility, Delivery, and Uber One) is translating into faster-than-expected growth, particularly in Delivery. Additionally, anticipated improvements in insurance terms, notably in California, are expected to free up capital that can both fund further expansion and support higher EBITDA and free cash flow.

Nowak modestly raises his 2026–2027 Gross Bookings and trip growth assumptions while still forecasting EBITDA margin expansion as Uber invests to sustain high-teens trip growth. He acknowledges near-term pressure on the stock’s valuation multiple from broader peer multiple compression and ongoing investor debate around autonomous vehicles, which led him to reduce the price target to $100 and apply a lower EBITDA multiple. However, he views the core U.S. rides business as undervalued at roughly 5x EBITDA and notes that early autonomous vehicle deployments are, so far, expanding the addressable market rather than cannibalizing demand. Taken together, these dynamics underpin his view that Uber’s shares remain attractively priced relative to its durable growth and cash generation potential, justifying the Buy recommendation.

In another report released today, TD Cowen also maintained a Buy rating on the stock with a $114.00 price target.