Uber Technologies: Wells Fargo raises PT to $127 from $119, maintains Overweight rating.

Uber Technologies: Wells Fargo raises PT to $127 from $119, maintains Overweight rating.

Wells Fargo has adjusted its price target for Uber Technologies, Inc. (UBER), increasing it from $119 to $127, while maintaining an overweight rating. This move comes amidst the bank's positive outlook on the gig economy and the growing advertising opportunities within the sector. The update reflects Wells Fargo's expectation of robust growth in advertising revenues for the rideshare and delivery platforms [1].

Wells Fargo analysts cited accelerating advertising momentum as a key driver of margin growth for Uber and other major players in the gig economy. The bank raised its 2026 and 2027 EBITDA forecasts by an average of 5% and 8% for Uber, DoorDash, Lyft, and Instacart. Among these, DoorDash and Uber were particularly highlighted for their advertising potential, with analysts noting significant upside to consensus estimates for both companies [1].

The bank's report also underscored the growing importance of restaurant advertising, which is expected to reach $7.0 billion by 2030, compared to $5.2 billion for grocery and $2.9 billion for rideshare. This indicates a significant opportunity for companies like Uber, which operate extensive food delivery services through Uber Eats [1].

In addition to the positive outlook on advertising, Uber's recent strategic partnerships, such as its collaboration with Best Buy to offer consumer electronics through Uber Eats, have also contributed to investor confidence. These partnerships, along with autonomous delivery trials, are seen as strategic moves to diversify Uber's service offerings and tap into new consumer markets [4].

Despite the positive outlook, analysts caution that high investments in autonomous vehicles and product diversification initiatives could impact future earnings. However, the current consensus analyst price target remains approximately 14% below the adjusted price target of $127, suggesting potential upside for investors [4].

In summary, Wells Fargo's updated price target and overweight rating for Uber Technologies reflect the bank's positive view on the company's advertising opportunities and strategic partnerships. Investors should consider these developments in conjunction with Uber's operational strategies when evaluating its future revenue and profitability potential.

References:
[1] https://www.investing.com/news/stock-market-news/wells-fargo-lifts-ebitda-for-rideshare-delivery-on-ad-momentum-4226847
[2] https://www.marketscreener.com/news/wells-fargo-adjusts-price-target-on-uber-technologies-to-127-from-119-maintains-overweight-rating-ce7d59d9d88df423
[3] https://www.cryptopolitan.com/tesla-robotaxi-app-beat-uber-waymo-downloads/
[4] https://simplywall.st/stocks/us/transportation/nyse-uber/uber-technologies/news/uber-technologies-uber-expands-uber-eats-with-best-buy-partn