Stifel Initiates Uber Coverage with Buy Rating, $110 Target

On June 11, 2025, Stifel initiated coverage of Uber Technologies with a Buy rating and set a price target of $110, reflecting approximately 27% upside from recent prices and signaling strong confidence in Uber’s evolving business model as a super app. Stifel highlighted Uber’s diverse services including ride-hailing, food delivery, grocery delivery, and its potential growth in advertising, noting Uber's low advertising penetration as a significant opportunity. Uber’s recent financial performance supports this optimism, with Q1 2025 earnings per share exceeding expectations, 14% year-over-year revenue growth, and gross bookings increasing 14%, driven by delivery and mobility segments. The company projects continued growth with Q2 2025 gross bookings expected to rise 16% to 20% year-over-year, alongside ambitious three-year financial targets including mid-to-high teens CAGR in gross bookings and high 30s to 40% EBITDA CAGR. Analysts also praised Uber’s strategic partnerships, such as with Waymo for autonomous vehicle trials, and Fitch Ratings’ recent upgrade of Uber’s credit rating to BBB+ based on its growing profitability and diversified revenue streams. Despite positive analyst sentiment and a consensus “Outperform” rating from brokerage firms, retail investor sentiment remains cautious, and GuruFocus estimates suggest a potential downside from current prices based on historical valuation metrics.