Uber’s Strong Market Position and Growth Potential Reinforce Buy Rating Despite Deceleration in Bookings Growth

J.P. Morgan analyst Doug Anmuth has reiterated their bullish stance on UBER stock, giving a Buy rating today.

Doug Anmuth has given his Buy rating due to a combination of factors that highlight Uber’s strong market position and growth potential. Despite a slight deceleration in gross bookings growth, Uber’s long-term prospects remain promising, driven by easing insurance costs and a shift towards international rides, which are expected to boost volume growth. Additionally, the company’s delivery segment is showing stable growth with improving profitability, supported by increasing advertising penetration.
Furthermore, Uber’s advancements in autonomous vehicle technology and strategic partnerships are encouraging, with significant traction in cities like Austin and Atlanta. The company’s strong fundamentals are evident in its growing monthly active platform consumers and improved driver supply and merchant selection. Anmuth remains optimistic about Uber’s ability to execute its growth initiatives, expand profit margins, and generate free cash flow, reinforcing the Buy rating with an increased price target.

In another report released today, Citi also reiterated a Buy rating on the stock with a $102.00 price target.