Uber’s Stock Gains a New Bull – Here’s Why

Uber Technologies Inc. (UBER) is experiencing renewed bullish sentiment, with analysts citing the company's strong position in the gig economy, improving profitability, and strategic capital allocation as key drivers for future growth. The stock is currently trading at $99.85, up more than 7% in the last month, and once again breaking $100 on the way up.

The markets reacted favorably to Mizuho's initiation of coverage with an ‘Outperform' rating and a $130 price target. This endorsement underscores the firm's belief in Uber's multi-year growth potential, forecasting a compound annual growth rate (CAGR) from 2025 to 2028 of 15% for revenue, 16% for gross profit, and 25% for GAAP earnings per share (EPS).

Mizuho's assessment highlights Uber's leadership in the gig economy, supported by a strong competitive advantage, high-quality management, and a disciplined approach to capital returns.

This positive sentiment aligns with similar ratings from other firms. Evercore ISI reiterated its ‘Outperform' rating with a $115 price target, encouraged by favorable rideshare trends, including healthy driver supply and controlled incentive spending.

Oppenheimer raised its price target to $100 from $85, maintaining an ‘Outperform' rating, signaling growing confidence in Uber's underlying financials and diminishing concerns about potential competition from RoboTaxi services.

Cantor Fitzgerald also increased its price target to $106, reaffirming an ‘Overweight' rating, acknowledging the potential impact of autonomous vehicle developments from partners like Waymo and Tesla on Uber's future performance.

Uber's recent announcement of a $20 billion stock buyback program further bolstered market confidence. This move, coupled with the company's forecast of third-quarter bookings exceeding Wall Street estimates, signals strong financial health and a commitment to returning value to shareholders.

The growing popularity of Uber's “Uber One” loyalty program, with membership increasing by 60% year-over-year to over 36 million, is also a significant factor. These loyal customers generate more than three times the profit compared to single-service users, contributing substantially to Uber's overall profitability.

Currently, the consensus among 33 analysts is a ‘Strong Buy' rating, with an average price target of $104.36, suggesting a potential upside of approximately 6.93%. The range of price targets, from $78 to $150, reflects a broad spectrum of bullish expectations for Uber's stock.

The combination of positive analyst ratings, strategic initiatives like the stock buyback and loyalty program, and favorable market dynamics has created a tailwind for Uber's stock. This renewed bullish sentiment reflects growing confidence in Uber's long-term growth potential and its ability to capitalize on the expanding gig economy and the evolving landscape of transportation.