Uber's Share Price Target Raised 11% by Wells Fargo on Earnings Beat

Wells Fargo has revised its outlook on Uber, predicting a significant increase in the company's share price. In a recent note to clients, Wells Fargo analysts, led by Ken Gawrelski, raised Uber's price target from $90 to $100 and maintained an overweight rating. The analysts anticipate that Uber's share price could surge to $126, representing a more than 52% increase from the stock's closing price of $82.81 on Friday. This optimistic forecast is driven by the expectation that increased competition will lead to greater efficiencies within the company.

The update from Wells Fargo follows Uber's first-quarter earnings report, which exceeded analysts' expectations. The company reported earnings per share of $0.83, surpassing the consensus forecast of $0.51. Additionally, Uber generated $11.5 billion in revenue for the quarter, marking a 14% year-over-year growth. However, this revenue figure fell slightly short of the anticipated $11.6 billion. One notable achievement was the booking of over three billion trips, an 18% increase from the first quarter of 2024.

Wells Fargo's analysts highlighted that both Uber's mobility and delivery segments continue to show strong top-line trends. They also noted that Uber's plans to deploy autonomous vehicles in the near future could attract more investor interest. The analysts believe that these positive fundamental trends will drive upward revisions in estimates, leading to the stock's outperformance.