Uber’s Strategic Positioning Amid Autonomous Vehicle Expansion: A Buy Recommendation

In a report released on June 18, Justin Post from Bank of America Securities maintained a Buy rating on Uber Technologies (UBER – Research Report), with a price target of $97.00.

Justin Post has given his Buy rating due to a combination of factors, including Uber’s potential to benefit from autonomous vehicle partnerships and its established position in the ride-hailing market. The expansion of Waymo’s service areas in California and its application for testing in New York City indicate a growing autonomous vehicle presence, which could eventually align with Uber’s network, enhancing its service offerings.
Additionally, Uber’s established network and diverse set of partners position it favorably amid increasing competition in the autonomous vehicle space. While Waymo’s expansion poses some risk, particularly to competitors like Lyft, Uber’s ability to aggregate demand and its strategic partnerships are expected to mitigate these risks. The potential for partnerships with companies like Zoox further underscores Uber’s strategic positioning in the evolving transportation landscape.

In another report released on June 17, Wells Fargo also maintained a Buy rating on the stock with a $100.00 price target.

Based on the recent corporate insider activity of 91 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.