Uber's AV Partnerships and Expansion Drive Buy Rating

Uber's potential to enhance utilization for autonomous vehicle partners and its prospects for expanding into new cities with Waymo or increasing AV supply in existing Waymo cities by 2026 support a Buy rating from Bank of America Securities. Analyst Justin Post maintains a positive outlook on the stock, with a price objective of $115.00. Jefferies also reiterated a Buy rating with a $120.00 price target. However, corporate insider sentiment is negative, with an increase in insiders selling shares over the past quarter.

Uber Technologies Inc. is actively seeking funding to expand its autonomous vehicle (AV) business, with plans to deploy more robotaxis and increase its AV supply in existing cities. The company is in talks with banks and private equity firms to finance this expansion, according to a statement from CEO Dara Khosrowshahi [1]. Khosrowshahi mentioned three potential revenue models for the robotaxi service: fixed rate payment for vehicle use, revenue sharing with fleet operators, and vehicle ownership with software licensing for self-driving technology.

Uber has already partnered with Waymo, an Alphabet subsidiary, to offer robotaxis in Austin and Atlanta. Additionally, the company has struck a $300 million deal with Lucid Motors and Nuro to deploy 20,000 electric vehicles with self-driving tech over six years [2]. The company is also considering selling minority stakes in companies to aid the expansion.

Despite the stock's recent dip, analysts maintain a bullish outlook on Uber. Bank of America Securities analyst Justin Post maintains a Buy rating with a price objective of $115.00, while Jefferies reiterated a Buy rating with a $120.00 price target [3]. However, corporate insider sentiment is negative, with an increase in insiders selling shares over the past quarter.

Uber's strong financial performance in the second quarter supports its expansion plans. The company reported revenue up 18.2% year-on-year to $12.65 billion and non-GAAP profit of $0.85 per share, 4% above analysts' consensus estimates. The company also unveiled a $20 billion share buyback plan [3].

Uber's potential to enhance utilization for AV partners and its prospects for expanding into new cities with Waymo or increasing AV supply in existing Waymo cities by 2026 support a Buy rating from Bank of America Securities. However, the negative insider sentiment and recent stock performance warrant caution for investors.

References:
[1] https://cryptorank.io/news/feed/601f9-uber-to-fund-robotaxi-expansion-through-banks-stock-responds
[2] https://www.thedailyupside.com/industries/autos/uber-ceo-floats-major-robotaxi-expansion/
[3] https://www.tradingview.com/news/stockstory:f403f3dc4094b:0-uber-q2-deep-dive-platform-expansion-autonomous-partnerships-and-shareholder-returns-drive-momentum/