Uber: Sustained Core Strength, Emerging Growth Drivers, and Operating Leverage Support Maintained Buy Rating

Uber Technologies, the Technology sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Buy rating on the stock and has a $114.00 price target.

John Blackledge has given his Buy rating due to a combination of factors that point to continued strength in Uber’s core businesses and profitability. He expects solid fourth-quarter results, with double-digit year-over-year growth in gross bookings and revenue, underpinned by strong performance in both Mobility and Delivery. On the Mobility side, he highlights healthy ride demand supported by lower rider prices in certain markets from reduced insurance costs, geographic expansion, and the rollout of new services such as Uber for Business, Reserve, and Shuttle. In Delivery, he points to robust order growth driven by expanding into grocery and retail categories, strengthened by strategic partnerships and the contribution from the Trendyol Go acquisition.

Blackledge also emphasizes the ramp-up of Uber One and the advertising business as incremental growth and margin drivers. He forecasts notably faster growth in EBITDA than in revenue, reflecting ongoing cost efficiencies and operating leverage. In addition, he views Uber’s growing autonomous vehicle partnerships in the U.S. and abroad as a strategic long-term positive, with AVs increasingly integrated into Uber’s marketplace to enhance utilization and efficiency. Taken together, these factors support his view that Uber’s outlook remains attractive and that the shares have further upside, justifying his maintained Buy rating and price target.

In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $115.00 price target.

Based on the recent corporate insider activity of 107 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.