Uber Technologies, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Ken Gawrelski from Wells Fargo maintained a Buy rating on the stock and has a $119.00 price target.
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Ken Gawrelski has given his Buy rating due to a combination of factors, primarily focusing on Uber’s strategic emphasis on increasing trip volumes. The company is prioritizing volume growth over pricing or incremental margins, which is seen as a strong counter to concerns about the sustainability of its mobility business. This approach is expected to drive stable growth in both Mobility and Delivery segments, with notable acceleration in U.S. mobility trips and organic growth in Delivery volumes.
Additionally, the partnership with Waymo in Austin is showing promising early results, suggesting potential for further expansion. Despite anticipated pressure on incremental margins due to ongoing investments, the long-term growth prospects appear favorable. Gawrelski’s analysis reflects a belief that Uber’s strategy will maximize value, leading to a slight increase in gross bookings estimates and maintaining an Overweight rating, albeit with a minor adjustment to the price target.
Gawrelski covers the Consumer Cyclical sector, focusing on stocks such as Expedia, Amazon, and eBay. According to TipRanks, Gawrelski has an average return of 18.8% and a 67.57% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $110.00 price target.