Key insights
- Piper Sandler reiterates Overweight rating on Uber with a $103 target, citing strong Q1 bookings growth and EBITDA within guidance. Continued strength in the US rides business and potential for buyback exceeding forecasts are noted. Uber's investments in Lucid and partnership with Block are also highlighted. This positive analyst sentiment and strategic initiatives suggest a moderately bullish outlook for Uber's stock.
Investing.com - Piper Sandler reiterated an Overweight rating and $103.00 price target on Uber Inc. (NYSE:UBER), calling the stock a top pick in the gig economy sector. The $151 billion company currently trades at $74.12, down 27% from its 52-week high, though InvestingPro analysis suggests the stock remains undervalued at current levels.
The firm expects first-quarter bookings growth of 23% year-over-year, or approximately 19% excluding foreign exchange effects, driven by 20% reported Mobility growth and 28% Delivery growth.
Piper Sandler forecasts $2.4 billion in first-quarter EBITDA, representing a 5.4% incremental margin, within the company’s guidance range of $2.37 billion to $2.47 billion. The firm projects adjusted earnings per share of $0.69, also within Uber’s guidance of $0.65 to $0.72.
The firm noted continued strength in the rides business in the United States and said the buyback may exceed its $1.5 billion forecast. An InvestingPro tip highlights that management has been aggressively buying back shares, one of 9 additional tips available to subscribers alongside comprehensive Pro Research Reports covering Uber’s full investment profile. Piper Sandler said it is monitoring fuel costs and a recently introduced driver subsidy.
The firm expressed a more cautious view on Lyft, citing sensitivity around first-quarter EBITDA of approximately $130 million and the company’s ability to hit 2027 targets.
In other recent news, Uber Technologies has made significant moves in various sectors. The company disclosed an 11.52% stake in Lucid Group, following a $200 million investment, with plans to purchase more Lucid vehicles. In a separate development, Uber has partnered with Block, Inc. to expand Square’s restaurant integration internationally and introduce Cash App Pay as a payment option on Uber platforms in the United States. This integration will extend to countries including Canada, Australia, the U.K., Ireland, France, and Spain, allowing restaurants to manage orders through their Square point-of-sale system. Additionally, TD Cowen has reiterated a Buy rating for Uber, citing strong growth in bookings and estimating a 23.4% year-over-year increase in first-quarter gross bookings. Furthermore, Coco Robotics has expanded its autonomous delivery service to San Jose, partnering with Uber Eats for zero-emission deliveries in the downtown area. These recent developments underscore Uber’s active engagement in expanding its technological and investment footprint.
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