Uber Technologies’ (UBER) price target has been raised to $94 from $87 due to confidence in the ride-hailing firm’s sustained growth of gross bookings, especially in mobility and delivery, UBS said in a note Thursday.
“We increase our [gross bookings] estimate by 2% for 2024 & 2025, while also raising our Adj. EBITDA estimate by 7% and 8% for 2024 and 2025 respectively,” UBS said.
Key factors include strong delivery growth, a more favorable than expected expansion in delivery margins for 2024, and consistent growth in mobility margins in 2024, the note said.
“We expect Uber to update on capital return during the Feb. 14 Investor Update event, which could in our view clear the path for shares to rerate higher,” UBS said.
UBS maintained a buy rating on the ride-hailing firm.