Uber’s Road to Success: Analysts Stick with Buy Rating and $88 Price Target as Self-Driving Car Wars Heat Up
Uber Technologies Inc. Maintains Buy Rating Amid Autonomous Vehicle Competition
On Monday, BofA Securities reaffirmed its Buy rating and $88.00 price target on Uber Technologies Inc. (NYSE: UBER), despite increased competition in the autonomous vehicle (AV) space. The stance comes amid speculation about potential technological advancements expected to be announced at Tesla (NASDAQ:)’s upcoming event.
Analysts at BofA Securities noted that Uber stock is underperforming due to third-party data showing Waymo is gaining market share in San Francisco and Los Angeles. There is also market anticipation for Tesla’s upcoming Robotaxi Day event, where the company could unveil new cost-effective mileage vehicles, advances in AV software, and consumer applications.
Despite these factors, BofA Securities remains bullish on Uber’s position in the AV market. The analyst notes that Tesla is not alone in its AV capabilities, noting that Wayve has similar technology in the UK. Other automakers are expected to close the early technology gap.
Moreover, the company believes that even if Tesla introduces new technologies, it will take several quarters or years of testing to achieve full self-driving. This period will give Uber and others time to close the technology gap. The growing competition in the AV sector, including Cruise, Waymo, and Amazon, is seen as a positive for Uber’s partnership initiative.
Uber’s current valuation of 15x its 2026 forecast free cash flow (FCF) is considered a discount to FANG stocks, which are valued at 22x. The BofA Securities analyst’s comments underscore the firm’s confidence in Uber’s long-term prospects, and he maintains a buy recommendation on the company’s stock.
In other recent news, Oracle Corporation received a Buy rating from Melius, citing confidence in the company’s advancements in artificial intelligence and strategic partnerships. The analyst predicts that Oracle could achieve earnings per share (EPS) run rate of close to $8.50 in the next two years. Meanwhile, Tesla Inc. received positive analyst reports from Deutsche Bank and Morgan Stanley, highlighting the company’s potential beyond electric vehicles in areas such as artificial intelligence, robotics, and energy storage.
Recent developments include the US decision to impose a 100% tariff on electric vehicles, which could impact Tesla’s supply chain. Nevertheless, the EU is set to reduce its proposed tariffs on Chinese electric vehicles, including Tesla, to less than 8%. The adjustment was made after new information was provided to the EU.
China has also invited the European Commission to discuss resolving its trade dispute, including tariffs on Chinese electric vehicles.