TD Cowen's Rating and Growth Estimates#
TD Cowen has reiterated a Buy rating for Uber Inc. (NYSE: UBER) and set a price target of $114.00. The firm projects that Uber's gross bookings for the first quarter will reach $52.8 billion, marking a 23.4% increase compared to the same period last year. This growth is attributed to strong performance in both Uber's Mobility (ride-sharing) and Delivery (food delivery) segments.
Adjustments to Financial Projections#
The firm has adjusted its estimates for Uber's Mobility segment due to a change in accounting practices in the UK, but it has kept the Mobility EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) largely unchanged. Conversely, TD Cowen has increased its estimates for Delivery take rates, which are the fees Uber charges merchants for using its platform, due to new merchant fees.
Stock Performance and Valuation#
Uber's stock has seen a 13% increase since it reached a low of $68.46 on March 27. Currently trading at $77.49, Uber has a market capitalization of $157.8 billion. The stock is considered undervalued, trading at 22.7 times its price-to-earnings ratio and approximately 13.6 times its enterprise value-to-EBITDA. Analysts predict that Uber's earnings per share will grow by about 28% annually from 2026 to 2031, and EBITDA will increase by approximately 23.5% annually during the same timeframe.
Recent Strategic Developments#
In addition to its financial outlook, Uber has made several strategic moves recently. The company is set to acquire an additional 4.5% stake in Delivery Hero for around $318 million, which is a 22% premium over the average share price. Furthermore, Uber is exploring a potential acquisition of a controlling stake in Kakao Mobility. The company has also expanded its partnership with Lucid Group, investing an additional $200 million, bringing its total investment to $500 million. These actions highlight Uber's commitment to enhancing its presence in both the food delivery and autonomous vehicle markets.