Uber Technologies (UBER – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Andrew Boone from JMP Securities maintained a Buy rating on the stock and has a $80.00 price target.
Andrew Boone’s rating is based on a variety of indicators that suggest Uber Technologies is performing robustly and is poised for continued growth. The company’s gross bookings, although slightly below consensus, showcased solid execution with a 21% year-over-year growth excluding foreign exchange impacts. Boone observes that Uber’s core operational metrics, such as Monthly Active Platform Consumers (MAPC) and trip growth, indicate healthy momentum. The slight deceleration in trip frequency growth is perceived as a product of challenging comparisons with the prior year, rather than a fundamental concern. Furthermore, Boone appreciates Uber’s strategic penetration into both value and premium market segments, as evidenced by substantial growth in shared rides and managed Uber for Business.
Despite a minor revision in the price target, Boone maintains a Buy rating, encouraged by Uber’s potential for sustained bookings growth and significant EBITDA margin expansion. The company’s mobility services, including new products like Moto, autos, and Shared Rides, are successfully reaching more economical segments of its Total Addressable Market (TAM). Boone also highlights the company’s increasing market share in the delivery space, with a notable increase in merchants and expansion in grocery and retail delivery services. The expectation for strong free cash flow growth and the potential for capital returns, combined with the recent dip in share price, reinforces Boone’s positive stance on Uber’s stock. However, Boone has moderately adjusted the valuation multiple, reflecting updated bookings growth estimates and the anticipated impact of the Argentine Peso’s hyperinflation.
In another report released on May 10, Truist Financial also maintained a Buy rating on the stock with a $86.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Uber Technologies (UBER) Company Description:
Founded in 2009, Uber Technologies, Inc. is a San Francisco, California-based transportation networking company that offers a ride-hailing service. It also has a food order and delivery business called Uber Eats, and a freight transportation business called Uber Freight.
Read More on UBER:
