CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target $14 to $93 on a P/E of 25.5x our 2025 EPS view of $3.63 (up $1.01; 18x our 2025 FCF view, with 2024’s EPS to $2.22 from $1.95). Uber Technologies, Inc. (NYSE:UBER) hosted its investor day, announcing a $7B share buyback program, indicating confidence in growth prospects. Management expects gross booking three-year CAGR of mid-high teens, driven by MAPCs and trips per user. Adj. EBITDA is projected to grow 30%-40% CAGR, with FCF as a percent of adj. EBITDA exceeding 90%. We are encouraged by UBER’s cross-selling opportunities, with one-third of consumers using both Mobility (+29% in Q4) and Delivery (+19% in Q4). We think UberOne’s 45% delivery gross bookings penetration and new low-cost offerings like Moto and Xshare can drive volume, balanced by premium Reserve and business travel options. Uber’s geographic expansion, new user segments, and multi-product portfolio position it well to drive growth and profitability. Key metrics and guidance indicate significant progress on profitability. We like UBER’s outlook.