On Thursday, DA Davidson analyst Tom White increased the price target for Uber Inc. (NYSE:UBER) shares to $98.00, up from the previous target of $80.00, while reiterating a Buy rating on the stock. The revision follows Uber’s first-quarter earnings for 2025, which White described as mixed but solid, with earnings before interest, taxes, depreciation, and amortization (EBITDA) slightly surpassing the consensus despite gross bookings (GB) falling marginally short by approximately 0.5%. The company’s GB growth was reported at 18% year-over-year on a foreign exchange-neutral basis, which was at the lower end of its 17-21% guidance. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with analyst targets ranging from $68 to $115.
Uber’s Mobility GBs saw a deceleration of 400 basis points, growing at 20% on a foreign exchange-neutral basis. This slowdown was attributed to Uber’s initiatives to enhance affordability, partially supported by a decrease in insurance cost growth, and a higher proportion of international trips, which came as a result of reduced inbound travel to the U.S. Nevertheless, trip growth within the Mobility segment remained stable for the third consecutive quarter at 19%, with the second quarter’s guidance also assuming Mobility trip growth of roughly 19%. The company’s overall revenue growth stands at 17.96%, with a market capitalization of $174.45 billion, reflecting its position as a prominent player in the ground transportation industry.
White highlighted Uber’s efforts to improve affordability as a positive move, which has been partially funded by the company’s lower insurance cost growth. The analyst also noted the significance of the international market to Uber’s business, as evidenced by the increased mix of international trips. InvestingPro analysis reveals the company maintains a moderate debt level with a debt-to-equity ratio of 0.53, while achieving strong financial health metrics with an overall score of 4.28 out of 5. For detailed insights into Uber’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The company’s performance in the first quarter, despite being at the lower end of its guidance range, still demonstrates a steady demand for Uber’s services. The stable trip growth in the Mobility segment for three straight quarters underpins the analyst’s confidence in the company’s ability to maintain its growth trajectory.
Uber’s stock price target increase by DA Davidson reflects an optimistic outlook for the company’s financial performance and growth prospects. The maintained Buy rating suggests that the analyst continues to see Uber as a favorable investment opportunity.
In other recent news, Uber Technologies Inc . reported first-quarter earnings that missed expectations for gross bookings and revenue, primarily due to lower-than-anticipated results in its Mobility division. Despite this, analysts from firms like TD Cowen and RBC Capital Markets have shown confidence in Uber’s future, with both firms raising their price targets to $96 and $94, respectively, citing strong customer growth and improved margins. Cantor Fitzgerald also increased its price target to $96, highlighting Uber’s solid EBITDA performance and strategic advancements in autonomous vehicle technology. Analysts from Truist Securities maintained a Buy rating with a $92 price target, acknowledging Uber’s robust demand in both Mobility and Delivery sectors, despite some pricing challenges.
Benchmark analyst Daniel L. Kurnos maintained a Hold rating on Uber, noting the company’s strategic focus on membership and cross-pollination as potential advantages in a competitive market. He also mentioned Uber’s potential to benefit from easier comparisons in upcoming quarters. Meanwhile, RBC Capital Markets pointed to Uber’s advanced vehicle technology and collaborations with partners like Waymo as positive developments. Cantor Fitzgerald’s Deepak Mathivanan emphasized Uber’s steady consumer growth and operational progress, particularly with autonomous vehicles in Austin.
Overall, Uber’s second-quarter guidance has been favorably received, with expectations of continued growth in gross bookings and EBITDA. Analysts remain attentive to Uber’s strategic initiatives and market positioning, especially in the evolving autonomous vehicle space.
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