Uber’s (UBER) push into autonomous vehicles (AVs) is drawing attention after the ride-hailing giant announced a partnership with WeRide to launch a robotaxi service in Abu Dhabi by 2025. Nevertheless, investors remain worried due to Waymo’s plans to expand to Miami, which is raising competition concerns. However, Bank of America (BofA) doesn’t see Waymo as an existential threat to Uber. In fact, it noted that the firm could actually benefit from the rise of AV players.
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With its well-established brand and massive user base of 161 million monthly active users, BofA believes Uber is well-positioned to partner with AV providers and turn potential competition into opportunity. He argued that the recent stock drop was an overreaction and pointed to Uber’s resilience in an evolving market.
BofA remains bullish on Uber’s prospects with a Buy rating. While Tesla and other AV contenders could shake up the space, Uber’s strategic partnerships and dominant market presence give it a strong foundation to capitalize on the growing AV industry. It is worth noting that BofA, which is led by five-star analyst Justin Post, has a 68% success rate on Uber stock with an average return of nearly 23% per rating.
Is Uber Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 34 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After an 8% rally in its share price over the past year, the average UBER price target of $93.26 per share implies 41.4% upside potential.
