Stifel lowers valuation, holds Buy
Stifel has reduced its price target for Uber Inc. (NYSE:UBER) to $105.00 from $122.00, but kept a Buy rating on the shares. The revised target still represents substantial upside from Uber’s current market price of $80.75, which the research note indicates is trading slightly below its InvestingPro Fair Value.
Robotaxi uncertainty cited
The research team pointed to concerns about how robotaxis could alter Uber’s business model, while acknowledging that the broader debate "won't be settled for some time." That uncertainty appears to be a key driver behind the downward adjustment in price target rather than any immediate change to the firm's revenue or earnings forecasts.
Near-term outlook and fundamentals
Despite the cut to its price target, Stifel signaled confidence in Uber's near-term prospects. The firm said it is comfortable with where Street estimates stand at the start of the year. Stifel highlighted Uber's recent top-line momentum, noting 18.25% revenue growth over the last twelve months, and referenced an InvestingPro assessment that assigns Uber a "GREAT" overall financial health score.
Execution across core businesses
Stifel expects Uber to continue executing across its core Mobility and Eats segments - the company's ride-sharing and food delivery businesses. The firm left its financial estimates for Uber unchanged after lowering the price target, indicating the revision reflects a change in valuation assumptions rather than a revised earnings outlook.
Valuation and reporting cadence
The note restated some basic valuation metrics: Uber's price-to-earnings ratio stands at 10.53, the company has been profitable over the last twelve months, and it is scheduled to report its next earnings on February 4.
Other analyst views
Uber's outlook continues to attract analyst attention. TD Cowen reiterated a Buy rating and projected fourth-quarter gross bookings of $53.1 billion, a 20.1% year-over-year increase that aligns with consensus estimates. Evercore ISI maintained an Outperform rating and emphasized the stability of Uber's core fundamentals and a favorable near-term earnings trajectory. Bernstein also reiterated an Outperform rating and kept a $115 price target, while noting concerns about autonomous vehicle technology.
Legal and competitive developments
On the legal front, a Dutch court overturned a 2021 ruling that had classified Uber drivers as employees, instead determining they are independent entrepreneurs. The court's decision cited drivers' investments in their vehicles and their ability to choose working hours as factors informing the classification.
Competition in the automated mobility space remains a factor for investors to weigh. The note referenced a recent industry development in which Tesla launched Robotaxi rides in Austin without safety monitors, a move that has drawn attention to the competitive landscape and raised questions about how the emergence of robotaxis could influence ride-hailing economics.
This report focuses on the valuations, analyst ratings, legal rulings, and competitive developments explicitly outlined in the research note and related analyst commentary.