Uber Technologies: Strategic Expansion and Autonomous Vehicle Vision Drive Buy Rating

Mizuho Securities analyst Lloyd Walmsley has maintained their bullish stance on UBER stock, giving a Buy rating today.

Lloyd Walmsley’s rating is based on several strategic initiatives and market opportunities that Uber Technologies is pursuing. One key factor is Uber’s strategy to expand its product offerings, including lower-cost and lower-margin options, which are expected to drive growth in Monthly Active Platform Consumers (MAPC). This approach is complemented by efforts to upsell customers to higher-frequency and higher-value services, leveraging Uber’s unique advantage in cross-shopping and the Uber One membership program.
Additionally, Uber’s vision for autonomous vehicles (AV) plays a significant role in the Buy rating. The company anticipates that AVs will eventually offer a safer and more cost-effective alternative to human-driven rides, particularly in high-labor-cost markets like the US, EU, and Japan. Uber’s partnerships with leading AV technology firms, such as Waymo and Chinese companies like WeRide and Pony.ai, further strengthen its position in this emerging market. These collaborations, along with Uber’s asset-light operating model and ongoing discussions with finance partners, are expected to enhance the company’s long-term growth prospects.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $120.00 price target.

Based on the recent corporate insider activity of 106 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.