Uber Stock Remains a 'Top Pick' Despite Tesla's Robotaxi Launch Jitters

BMO Capital analyst Brian Pitz remains bullish on Uber despite Tesla's Robotaxi launch, calling Uber a "Top Pick" with a $101 price target. Pitz sees the recent dip as a buying opportunity, citing Uber's larger plans for autonomous vehicles and its acquisition of Dantaxi, which will bring 3,500 drivers onto the platform. He also finds Uber's valuation compelling, with shares trading at 19x next-twelve-month EBITDA, below its two-year forward average.

BMO Capital analyst Brian Pitz maintains a positive outlook on Uber Technologies Inc. (NYSE:UBER), affirming his Outperform rating and a $101 price target, despite recent market fluctuations following Tesla's Robotaxi service launch in Austin. Pitz views the recent 4% intraday dip in Uber's shares as a buying opportunity, attributing the decline to the market's reaction to Tesla's announcement [1].

Pitz highlights several factors supporting Uber's robust growth prospects. He points to the company's acquisition of Dantaxi, Denmark's largest taxi company, which will bring 3,500 drivers onto the platform, enhancing Uber's presence in Denmark and improving match rates and estimated times of arrival for consumers [2].

The analyst also underscores Uber's attractive valuation, with shares trading at 19 times next-twelve-month EBITDA, significantly below the two-year forward average of 21 times and the high-band of 27 times. Uber's strong financial health, including $45.4 billion in revenue over the last twelve months and a 74% return on equity, further supports this valuation [3].

Pitz emphasizes Uber's leadership in the AV space, with over 15 AV partners and the anticipated launch of Shared AV Rides in 2026, which could attract new users and increase ride frequency due to potentially lower price points. He also notes the company's strong financial performance, with revenue expected to increase from $43.98 billion in fiscal year 2024 to $58.89 billion in fiscal year 2026, and adjusted EBITDA anticipated to rise from $6.48 billion to $10.78 billion over the same period [3].

Moreover, Pitz finds Uber's market capitalization of $174 billion and its "GREAT" Financial Health Score of 3.43 out of 5, reflecting robust operational performance and market leadership in the Ground Transportation industry [3].

Other analysts have also raised their price targets for Uber's stock. Tigress Financial Partners increased its price target to $110, Loop Capital to $105, and JPMorgan to $105, citing strong ridership, delivery demand, and positive financial performance outlooks [1].

Uber's recent introduction of early access to Waymo rides in Atlanta and its strategic expansion into new service offerings underscore the company's commitment to technological innovation and market growth [1].

References:
[1] https://www.investing.com/news/analyst-ratings/bmo-capital-maintains-uber-stock-outperform-rating-101-target-93CH-4071225
[2] https://www.marketscreener.com/quote/stock/UBER-TECHNOLOGIES-INC-57860975/news/Uber-Technologies-Inc-acquired-Dantaxi-4x48-A-S-50095860/
[3] https://www.investing.com/news/swot-analysis/ubers-swot-analysis-ridehailing-giants-stock-surges-on-av-partnerships-93CH-4067014