Uber Technologies: Wells Fargo Keeps Overweight Rating, Cuts PT to $119.

Uber Technologies: Wells Fargo Keeps Overweight Rating, Cuts PT to $119.

Wells Fargo has revised its price target for Uber Technologies Inc. (NYSE: UBER) to $119.00 from $120.00, while maintaining an Overweight rating on the stock. This adjustment comes despite Uber's strong financial performance and positive analyst sentiment.

The investment bank cited encouraging early results from Uber’s partnership with Waymo in Austin, where vehicle deployments are ahead of initial forecasts. This supports further expansion of the operating fleet and service area, aligning with Uber’s robust revenue growth of 18.15% over the last twelve months. Wells Fargo also noted that Waymo volumes appear to be additive to Uber’s business in Austin.

The Atlanta market, though in its early stages, is showing similar vehicle utilization trends to Austin. The timing of new market partnerships beyond these cities remains uncertain. For in-depth analysis, InvestingPro subscribers can access comprehensive reports and additional insights.

Wells Fargo has raised its 2025 and 2026 gross bookings estimates by 1% and 3% respectively. The firm’s model now includes Trendyol Go, expected to contribute approximately $620 million in gross bookings starting in the third quarter of 2025. However, the slight price target reduction reflects a 1% decrease in the 2026 EBITDA estimate due to elevated investments.

Uber recently reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an EPS of $0.63, slightly above the forecasted $0.62, and reported revenue of $12.7 billion, exceeding predictions of $12.47 billion. Several analysts have responded positively to Uber’s performance. BMO Capital raised its price target to $113, highlighting strong delivery growth. BofA Securities maintained a Buy rating with a $115 target, citing overall growth and stable bookings. BTIG reiterated a Buy rating with a $100 target, noting ongoing strength in delivery services and margin expansion.

References:
[1] https://www.investing.com/news/analyst-ratings/wells-fargo-trims-uber-stock-price-target-to-119-on-investment-outlook-93CH-4175961