Uber: Operational Leadership, Pricing Power, and EPS Focus Underpin Buy Rating

Needham analyst Bernie McTernan has maintained their bullish stance on UBER stock, giving a Buy rating yesterday.

Bernie McTernan has given his Buy rating due to a combination of factors that highlight Uber’s solid competitive and financial positioning. His mobility tracking work indicates that Uber continues to outperform on operational metrics such as wait times, offering meaningfully faster pickup versus Lyft, while still sustaining premium pricing. The fact that Uber can remain nearly 30% more expensive on average over the past two years yet still see resilient demand underscores strong brand, customer loyalty, and pricing power. McTernan also points to a supportive overall pricing environment, with both major ride-share platforms operating at historically high fare levels despite mixed signals on demand, which supports revenue durability.

In his updated model, McTernan makes modest upward revisions to reported estimates based on currency tailwinds, while maintaining healthy constant-currency growth expectations through 2025 and 2026, reinforcing his positive growth outlook. He also incorporates Uber’s new segment operating income and non-GAAP EPS disclosures, viewing the company’s increased emphasis on earnings per share as an important maturation step that can help investors better recognize the value of its improving profitability. In his view, the shift in focus toward EPS, combined with an active share repurchase program, should drive better market appreciation of Uber’s earnings power and capital return strategy. Taken together—operational leadership, pricing strength, favorable FX impact on estimates, and a clearer path to EPS-driven valuation—support his Buy recommendation on the stock.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a $111.00 price target.