Uber (UBER) Stock Faces Mixed Reactions After Q4 Results, Analysts Remain Optimistic About Long-Term Growth
Uber Technologies Inc. (NYSE: UBER) recently faced an 8% decline in its stock price following its fourth-quarter earnings report. Despite the immediate drop, KeyBanc Capital Markets maintained an Overweight rating on the stock with a price target of $85.00. This price target reflects confidence in Uber’s long-term growth potential, despite challenges such as foreign exchange headwinds and issues related to autonomous vehicles.
KeyBanc’s Positive Outlook Despite Short-Term Setbacks
KeyBanc analyst Justin Patterson acknowledged the miss in bookings due to FX fluctuations but reiterated that Uber’s long-term outlook remains solid. With Uber’s EBITDA reaching $3.56 billion in the past 12 months and a strong overall financial health score, Patterson remains confident that the company’s strategic initiatives, including Uber One Memberships and expansion into smaller markets, will drive future growth in bookings, EBITDA, and free cash flow (FCF).
Patterson emphasized that Uber’s 2026 financial targets are still within reach, as the company trades at a compelling 12.3 times its projected enterprise value to EBITDA ratio for 2026. This valuation suggests a strong risk/reward profile for investors.
Mixed Analyst Reactions: Differing Price Targets
Following Uber’s earnings results, a range of analysts have adjusted their price targets for the company. Piper Sandler reduced its target from $82 to $80, citing challenges from FX and autonomous vehicles but maintained its Overweight rating. Needham reiterated its Buy rating with a stable price target of $90, highlighting Uber’s affordability initiatives and increased adjusted EBITDA estimates.
Citi also maintained a Buy rating but lowered its price target from $98 to $92, acknowledging Uber’s growth and potential for future benefits. Conversely, Wolfe Research cut its target from $92 to $80, citing Uber’s aggressive spending on top-line growth while still retaining an Outperform rating.
BofA Securities Raises Price Target to $95
In a more positive development, BofA Securities raised its price target for Uber from $93 to $95, bolstered by strong revenue growth and bookings figures that exceeded Wall Street’s expectations.
Despite varying perspectives, analysts remain generally optimistic about Uber’s future, pointing to its robust growth, strategic initiatives, and the potential for overcoming short-term challenges. As the ride-hailing giant continues to expand and evolve, investors and analysts alike will be closely monitoring its performance in the coming quarters.
