Bernstein has reaffirmed an Outperform rating on Uber Inc. (NYSE:UBER) and held a $115.00 price target as the company approaches the release of its fourth-quarter 2025 results, which are scheduled for tomorrow. The firm’s stance comes amid ongoing debate over how autonomous vehicle - AV - technology will influence Uber’s core mobility business.
According to InvestingPro data cited by analysts, the broader analyst community continues to tilt positive on Uber, with a consensus that signals a strong buy. Reported price targets among analysts span a wide range, from $73 to $150.
Analyst Nikhil Devnani has maintained a constructive view on the company despite highlighting concerns about AV dynamics and their potential to change the economics of ride-hailing. Bernstein’s analysis points to a disconnect between Uber’s market price and what the firm views as underlying fundamentals. At roughly $80 per share in the current market, the stock is trading at a P/E ratio of about 10.36. InvestingPro figures show Uber generated revenue growth of 18.25% over the last twelve months, figures Bernstein uses to support its assessment that the shares look modestly undervalued at prevailing levels.
Bernstein further models an extreme scenario to stress-test valuation assumptions: even if autonomous vehicles completely disrupted Uber’s U.S. mobility segment over a 15-year horizon, the research indicates the company’s equity should still command a valuation in the $65-70 range. The note also observes that valuation alone often does not act as a near-term catalyst in the sector; instead, clarity on timelines for unsupervised autonomous vehicle deployment - particularly from Tesla - remains an influential variable for Uber’s longer-term outlook.
Several contemporaneous developments frame the outlook for Uber. Stifel recently trimmed its price target on the stock from $122 to $105 while retaining a Buy rating, a move the firm said reflects concerns about the potential effect of robotaxis on Uber’s business model. Separately, Uber has announced partnerships with Nvidia Corp. and Mercedes-Benz Group AG aimed at advancing robotaxi services, with Mercedes-Benz’s S-Class identified as the platform for those efforts.
On the regulatory and labor front, a Dutch court reversed an earlier decision that had classified Uber drivers as employees, instead recognizing them as independent entrepreneurs. The ruling emphasized factors such as drivers’ investments in their vehicles and their ability to choose working hours.
Competitive and market-pressure items have also emerged: Grubhub’s removal of delivery and service fees on large orders has weighed on Uber’s shares, and Lyft Inc. is developing a rideshare service targeted at teenagers, a demographic Uber entered roughly three years ago.
Key points
- Bernstein reiterates Outperform on Uber with a $115 price target ahead of Q4 2025 results; analyst price targets range from $73 to $150.
- Firm highlights that Uber trades near $80 and appears modestly undervalued on a P/E of 10.36 amid 18.25% revenue growth over the last year.
- Partnerships with Nvidia and Mercedes-Benz on robotaxi efforts and recent regulatory and competitive developments are shaping near-term investor sentiment.
Risks and uncertainties
- Autonomous vehicle deployment timeline remains unclear - particularly unsupervised AV rollouts - and is a key variable for Uber’s long-term mobility economics.
- Competitive pricing moves in adjacent services, such as Grubhub’s fee cuts, can pressure revenue and share performance in the near term.
- Labor and regulatory shifts can alter operating cost structures; while a Dutch court ruled drivers are independent entrepreneurs, such rulings may vary by jurisdiction.