Uber Technologies (UBER) Raises Price Target to $120 Amid Bullish Outlook

Uber Technologies (UBER) hit a 52-week high of $97.12, with a price target raised to $120 by analyst Gawrelski, citing robust growth potential and market expansion. The company has expanded its delivery service and launched self-driving rides in Atlanta, driving a 48% stock gain over the past three months. Wall Street has a Strong Buy consensus rating with an average price target of $99.81.

Uber Technologies, Inc. (NYSE: UBER) has reached a 52-week high of $97.12, with analyst Gawrelski raising the price target to $120, citing robust growth potential and market expansion [1]. The company has experienced a 48% stock gain over the past three months, driven by the expansion of its delivery service and the launch of self-driving rides in Atlanta. Wall Street has a Strong Buy consensus rating with an average price target of $99.81.

Uber’s first quarter 2025 results demonstrated the company’s resilience and ability to execute in a challenging macroeconomic environment. With revenue of $45.38 billion in the last twelve months and a healthy gross profit margin of 33.6%, the company has shown strong operational efficiency. Gross bookings reached $43.1 billion, representing a 14% year-over-year growth, while adjusted EBITDA exceeded consensus expectations at $1.9 billion [1].

The Mobility segment showed robust growth, with bookings increasing by 13.5% year-over-year. Despite some deceleration in U.S. pricing noted in April, the segment’s performance remains strong, driven by expansion into new markets and use cases such as airport and suburban trips. Uber’s Delivery segment continued to perform well, with bookings growing 18% year-over-year, excluding foreign exchange impacts. The addition of high-profile merchants like The Home Depot (NYSE: HD), Sally Beauty (NYSE: SBH), FreshDirect, and Petco to the Uber Eats platform is expected to drive further growth in this segment [1].

One of the most significant developments for Uber has been its strategic approach to the autonomous vehicle (AV) space. Rather than pursuing a vertically integrated model, Uber has opted for a partnership strategy, collaborating with multiple AV companies. The company’s partnership with Waymo in Austin has shown promising early results, with positive consumer opt-in rates for AV services. Uber’s AV partnerships have grown to 18, with significant expansions planned in various regions. This diversified approach allows Uber to hedge against AV risks while potentially benefiting from the technology’s advancement without bearing the full burden of development costs [1].

Uber’s acquisition of Trendyol GO signals the company’s continued focus on international expansion and strengthening its position in key markets. This move is expected to bolster Uber’s delivery services and increase its market share in Türkiye. The company is also making strides in its advertising business, with revenue growing at a 60% year-over-year rate and reaching a $1.5 billion run-rate. This emerging revenue stream presents significant opportunities for Uber to monetize its vast user base and extensive location data [1].

Uber’s management has provided optimistic guidance for the coming quarters. For Q2 2025, the company anticipates gross bookings growth between 14.5% and 18.3% year-over-year, surpassing consensus expectations. Adjusted EBITDA is projected to be between $2.02 billion and $2.12 billion for the same period. Looking further ahead, analysts project Uber’s revenue to grow from $43.98 billion in fiscal year 2024 to $58.89 billion in fiscal year 2026 [1].

Uber’s financial health is rated as "GREAT" by InvestingPro, with particularly strong scores in growth (4.32/5) and price momentum (4.27/5). With a moderate debt level and a return on equity of 74%, Uber demonstrates solid financial fundamentals. Adjusted EBITDA is expected to increase from $6.48 billion to $10.78 billion over the same period, with EBITDA margins improving from 17.3% to 18.5% [1].

However, investors should remain aware of the potential risks posed by regulatory challenges, intense competition, and the uncertain timeline for widespread AV adoption. As Uber navigates these complexities, its ability to maintain its market leadership and successfully integrate new technologies will be crucial in determining its long-term success.

References:
[1] https://www.investing.com/news/swot-analysis/ubers-swot-analysis-ridehailing-giants-stock-navigates-autonomous-future-93CH-4124194