Last week, BTIG analyst Jake Fuller reiterated a Buy rating on Uber Technologies (UBER) stock with a price target of $90. The analyst remains bullish on the ride-hailing company but expects its Q4 bookings toward the middle of the guidance range rather than at the high end, as he sees management’s favorable commentary being offset by mixed U.S. receipt data, currency headwinds, and seasonality.
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BTIG Throws More Light on Uber’s Q4 Bookings
BTIG’s Fuller noted that while commentary on Uber’s U.S. ride-sharing business seemed constructive at intra-quarter checks, his firm’s receipt data revealed more “downbeat” trends, with a slowdown in ridesharing offsetting acceleration in the company’s delivery business.
The analyst added that in the final check-in call with Uber, the company highlighted the impact of seasonality on its business and forex headwinds, which have worsened since the initial outlook was issued.
Interestingly, Fuller noted that Uber has consistently achieved its bookings guidance and expects the company to continue this trend for Q4 2024. However, the analyst expects bookings to come in at the middle of the 14% to 18% guidance rather than at the high end of the outlook. Moreover, he expects Q1 guidance to reflect a modest slowdown in bookings.
Is Uber a Buy or Sell Right Now?
Despite near-term pressures and concerns related to the impact of robotaxis on the ride-sharing market, most analysts remain bullish on Uber Technologies stock. On Friday, Wolfe Research analyst Shweta Khajuria increased the price target for UBER stock to $92 from $90 and reaffirmed a Buy rating.
Khajuria’s valuation model suggests that UBER’s mobility business is trading at a discount to rival Lyft (LYFT) despite a 50% share in the international rides (excluding China) market. Moreover, Uber’s delivery business is trading at a discount to DoorDash (DASH). She also highlighted Uber’s continued focus on operational efficiency gains and product expansion.
Overall, UBER stock scores a Strong Buy consensus rating on TipRanks based on 33 Buys versus two Holds. The average Uber stock price target of $93.35 implies 44.5% upside potential. Shares have risen about 11% in the past year.
