US Stocks across the board continued to rise on Friday to new highs in a bullish fashion, with some experts focusing on the booming momentum behind UBER. The rideshare; car rental and food-delivery service had been on a tear in the last 3 months, climbing 15%. Furthermore, shares received a boost following the Tesla (TSLA) robotaxi event, which didn’t turn too many heads and instead shifted attention back to Uber.
UBS bank is specifically bullish on UBER, raising its upcoming stock price target to $114. David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, sees the Fed is cutting interest rates and other factors as a potential catalyst for UBER rising. The brokerage also indicated that Uber will remain an important consumer-facing demand provider.
UBS believes Uber will remain a key consumer-facing demand provider and continues to see a path to the high end of its mid-term EBITDA guidance, driven by Uber One expansion and platform synergies.
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Uber’s diversification into a ride-share/food delivery service has made it one of the top companies outside of the Magnificent 7 in a short period. Both industries show growth potential and are in high demand. Furthermore, the company is also witnessing northbound estimate revisions for 2024 and 2025. Analysts like UBS say that UBER has even more room to grow in the coming years, and suggest that the company is in a “buy now” phase.
