Uber Inc. (NYSE: UBER) Receives Outperform Rating from Oppenheimer with Increased Price Target of $95: Survey Shows Positive Outlook for Delivery Services
Oppenheimer has maintained an Outperform rating on Uber Inc. (NYSE: UBER) and raised the price target to $95 from $90 after conducting a survey of 1,451 participants. The survey results revealed a strong positive outlook for Uber's restaurant and grocery delivery services.
Key findings from the survey include:
- 64% of restaurant delivery users and 70% of grocery delivery users are spending more compared to six months ago
- There is potential to increase the frequency of orders among current users of restaurant delivery services
- 71% of non-users are unaware of potential savings through monthly subscriptions, presenting an opportunity for Uber to attract new customers
While grocery delivery has seen less penetration than restaurant delivery, with 57% of respondents using the service compared to 67% for restaurant delivery, in-store initiatives could provide a long-term advertising opportunity. Oppenheimer's price target of $48 for this segment is based on estimated 2025 EBITDA and factors in a slower EBITDA growth rate compared to peers.
Uber Technologies (NYSE: UBER) has been active in the autonomous vehicle sector, with partnerships in the United Arab Emirates and the launch of robotaxi services in Austin and Atlanta. The company has also formed a delivery partnership with Darden Restaurants (NYSE: DRI) to meet growing customer demand for home delivery options.
InvestingPro Insights:
- Uber's market capitalization is $161.12 billion, indicating a significant presence in the market
- The company's high P/E ratio of 78.7 is supported by expected net income growth and upward earnings revisions
- Uber's revenue growth aligns with Oppenheimer's GTV projections for Uber Delivery
- The company's low PEG ratio of 0.14 suggests undervalued earnings growth relative to peers
- Uber's strong return over the last year highlights favorable market reception to its business strategies
For further analysis and investment tips on Uber, InvestingPro offers a comprehensive list of 14 tips to gain deeper insights into the company's financial health and market position.
In conclusion, Uber's positive outlook, strong financial performance, and strategic partnerships position it as a promising investment opportunity in the ground transportation industry. Investors looking for growth opportunities may find Uber's undervalued earnings growth and favorable market reception appealing for their investment portfolios.