On Thursday, DA Davidson made an adjustment to the price target for Uber Inc. (NYSE:UBER), reducing it to $80.00 from the previous target of $84.00. Despite this change, the firm maintained its Buy rating on the company's shares. With a current market capitalization of $145 billion and trading at $68.88, InvestingPro analysis suggests the stock is slightly undervalued. The adjustment follows Uber's release of its fourth-quarter financial results for 2024, which showed strong performance indicators.
Uber's fourth-quarter results demonstrated a 100 basis point acceleration in Total (EPA:TTEF) FX-Neutral Gross Bookings (GB) growth, reaching 21%, which surpassed the high-end of the company's guidance range of 16%-20%. This performance contributed to the company's impressive annual revenue of $44 billion, representing an 18% year-over-year growth. Notably, the Mobility GB growth remained consistent at 24%, with a particular acceleration observed in the U.S. market during the fourth quarter. Additionally, the Delivery GB segment experienced an acceleration of 100 basis points, achieving an 18% growth rate, with all rates being FX-Neutral.
According to DA Davidson, foreign exchange headwinds during the fourth quarter somewhat dampened the reported Gross Bookings and Revenues compared to the published consensus. Nevertheless, Uber's EBITDA for the quarter was approximately $1,842 million, aligning with market expectations. For the full year, the company achieved an EBITDA of $3.56 billion, demonstrating strong operational efficiency. The EBITDA margin on Gross Bookings improved by 80 basis points year-over-year. Get deeper insights into Uber's financial health and detailed valuation metrics with InvestingPro, which offers exclusive access to comprehensive financial analysis and real-time market data.
The firm's analysis highlights Uber's solid quarter, with a particular emphasis on the company's ability to maintain stable growth in its Mobility business and accelerate growth in its Delivery service. With a P/E ratio of 14.39x and significant net income of $9.86 billion over the last twelve months, Uber has demonstrated strong profitability metrics. The Buy rating suggests that DA Davidson remains optimistic about Uber's performance and future prospects despite the recent foreign exchange challenges and the slight decrease in the price target.
In other recent news, Uber Technologies Inc . has been the focus of various analyst notes. KeyBanc Capital Markets maintained its Overweight rating on Uber, setting a price target of $85.00. The firm highlighted the potential of Uber One Memberships and the company's expansion into smaller markets as key factors in sustaining growth.
On the other hand, Piper Sandler adjusted its financial outlook for Uber, reducing the price target to $80 from $82, yet maintained an Overweight rating on the shares. The firm acknowledged Uber's mixed financial results, noting that the company's Bookings and EBITDA surpassed expectations, yet its forward guidance did not meet anticipated targets.
Needham analysts reiterated a Buy rating for Uber, with a steady price target of $90.00, expressing confidence in Uber's strategic direction and potential for financial performance improvement. Citi analyst Ronald Josey adjusted the price target on Uber shares to $92 from $98, maintaining a Buy rating, and highlighted the impressive growth of Uber One, which ended the period with 30 million subscribers.
Lastly, Wolfe Research reduced its price target to $80 from $92, maintaining an Outperform rating on Uber's shares. The firm noted that Uber's core business metrics remain stable, with management expressing confidence in achieving over 20% growth in Mobility Bookings for the first half of 2025. These are the recent developments for Uber Technologies Inc.
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