BTIG has maintained a Buy rating on Uber Technologies Inc . (NYSE: NYSE:UBER) with a steady price target of $90.00. The firm highlighted Uber's new partnership with the carsharing platform Turo as a significant development.
The collaboration is set to integrate Turo's peer-to-peer car rental offerings into the Uber app starting early next year, signaling a strategic pivot for the ride-hailing giant.
Uber's move to incorporate Turo's services comes as the company prepares to close its own carsharing operation, which was launched in the US and Canada in 2023 after acquiring an Australian carsharing business the previous year. The decision to shutter this segment on September 11, 2023, was influenced by rising operational costs and underwhelming booking numbers.
The analyst from BTIG pointed out that if Uber could transfer even a modest percentage of its US mobility Monthly Active Platform Consumers (MAPC) to car rentals—specifically 3-5%—it could translate into a substantial increase in bookings, potentially exceeding $500 million. This projection underscores the potential revenue impact of the Turo partnership on Uber's business.
In other recent news, Uber Technologies Inc. has had a series of notable developments. The company has reported a significant increase in its second quarter of 2024, with gross bookings and adjusted EBITDA rising by 21% and 71% year-over-year, respectively.
Uber has also entered into a strategic partnership with Turo, the world's largest peer-to-peer car sharing marketplace, to expand its car rental options across multiple countries.
Uber has been the subject of several analyst notes. Cantor Fitzgerald initiated coverage on Uber shares with an Overweight rating and a price target of $90.00, expecting solid growth and margin expansion in the upcoming years. Loop Capital maintained a Buy rating on Uber's stock and slightly increased its price target to $84.00 from $83.00. BofA Securities also maintained a Buy rating with a price target of $88.00, highlighting Uber's potential for long-term growth.
Uber has announced collaborations with Wayve, an artificial intelligence firm, and Cruise, an autonomous vehicle company.
These partnerships aim to integrate advanced autonomous vehicle technology into Uber's ride-hailing platform. However, the company has faced regulatory challenges, being fined €290 million ($324 million) by the Dutch Data Protection Authority for transferring European taxi drivers' personal data to the United States.
InvestingPro Insights
Uber Technologies Inc. (NYSE: UBER) is poised for a transformative year according to recent data from InvestingPro. With a market capitalization of $150.22 billion and a notable revenue growth of 14.44% over the last twelve months as of Q2 2024, Uber's financial health appears robust. The company's strategic pivot, including the partnership with Turo, is reflected in the positive outlook from analysts, with three analysts revising their earnings upwards for the upcoming period, as highlighted in InvestingPro Tips. This optimism is also mirrored in the company's expected net income growth this year.
InvestingPro data suggests that Uber is trading at a high P/E ratio of 73.99, which might raise eyebrows for value-focused investors. However, when considering the company's near-term earnings growth, the PEG ratio of 0.14 indicates that the stock may be undervalued relative to its growth potential. Additionally, the company has shown a strong return over the last month, with a 22.37% increase, and a significant one-year price total return of 53.73%, signaling strong market confidence.
For investors looking to delve deeper into Uber's financials and future prospects, there are over 14 additional InvestingPro Tips available, including insights into valuation multiples and profitability forecasts. The comprehensive analysis available on InvestingPro (https://www.investing.com/pro/UBER) can provide a clearer picture of how Uber's latest strategic moves, such as the Turo partnership, may influence its market position and financial performance.
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