UBS Reiterates Buy on Uber Technologies, Raises PT to $117 from $115.
ByAinvest
Thursday, Aug 7, 2025 1:16 pm ET1min read
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UBS highlighted that Uber's mobility business showed steady trip growth quarter-over-quarter, with July performing particularly well. The firm attributed the topline growth miss to the company passing lower insurance cost benefits to consumers rather than facing competitive pressures or losing market share. The company's financial health remains robust, with a healthy P/E ratio of 15.18 and substantial EBITDA of $5.23 billion [1].
In the delivery segment, UBS observed that trip growth accelerated year-over-year in the second quarter of 2025, with favorable pricing trends. These improvements led UBS to increase its consolidated adjusted EBITDA estimates for 2026 and 2027 by approximately 2% each. The firm views Uber as a "multi-platform, steady mid-term compounder" and maintains its preference for Uber over DoorDash (NASDAQ: DASH) and Lyft (NASDAQ: LYFT), citing a compelling 2.7x upside/downside skew. The research note also highlighted Uber’s surprise $20 billion buyback program and the lower likelihood of capital being used for robotaxi fleet expansion, which UBS believes makes a stronger case for broadening Uber’s investor base [1].
Uber Technologies Inc. recently reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.63, slightly above the forecasted $0.62, resulting in a 1.61% positive surprise. Revenue also exceeded predictions, reaching $12.7 billion compared to the expected $12.47 billion, marking a 1.84% surprise. Despite the positive earnings, Uber’s stock experienced a slight dip in premarket trading. Analysts from BMO Capital, Wells Fargo, BofA Securities, and BTIG have also raised or maintained their price targets on Uber, citing various reasons such as strong delivery growth, partnerships with Waymo, and ongoing strength in delivery services [1].
References:
[1] https://www.investing.com/news/analyst-ratings/uber-stock-price-target-raised-to-117-from-115-at-ubs-on-growth-trends-93CH-4176019
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UBS Reiterates Buy on Uber Technologies, Raises PT to $117 from $115.
UBS has reiterated its buy recommendation on Uber Technologies Inc. (NYSE: UBER) and raised its price target to $117 from $115, reflecting the company's robust growth trends in both mobility and delivery segments. The financial services giant, now valued at $186.57 billion, has seen its revenue increase by 18.15% over the past year, demonstrating strong financial health [1].UBS highlighted that Uber's mobility business showed steady trip growth quarter-over-quarter, with July performing particularly well. The firm attributed the topline growth miss to the company passing lower insurance cost benefits to consumers rather than facing competitive pressures or losing market share. The company's financial health remains robust, with a healthy P/E ratio of 15.18 and substantial EBITDA of $5.23 billion [1].
In the delivery segment, UBS observed that trip growth accelerated year-over-year in the second quarter of 2025, with favorable pricing trends. These improvements led UBS to increase its consolidated adjusted EBITDA estimates for 2026 and 2027 by approximately 2% each. The firm views Uber as a "multi-platform, steady mid-term compounder" and maintains its preference for Uber over DoorDash (NASDAQ: DASH) and Lyft (NASDAQ: LYFT), citing a compelling 2.7x upside/downside skew. The research note also highlighted Uber’s surprise $20 billion buyback program and the lower likelihood of capital being used for robotaxi fleet expansion, which UBS believes makes a stronger case for broadening Uber’s investor base [1].
Uber Technologies Inc. recently reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.63, slightly above the forecasted $0.62, resulting in a 1.61% positive surprise. Revenue also exceeded predictions, reaching $12.7 billion compared to the expected $12.47 billion, marking a 1.84% surprise. Despite the positive earnings, Uber’s stock experienced a slight dip in premarket trading. Analysts from BMO Capital, Wells Fargo, BofA Securities, and BTIG have also raised or maintained their price targets on Uber, citing various reasons such as strong delivery growth, partnerships with Waymo, and ongoing strength in delivery services [1].
References:
[1] https://www.investing.com/news/analyst-ratings/uber-stock-price-target-raised-to-117-from-115-at-ubs-on-growth-trends-93CH-4176019
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