Key Takeaways
- Shares of Uber Technologies hit a fresh record high Tuesday morning as JPMorgan analysts increased their price target on the ride-sharing firm’s stock.
- The analysts lifted their price target to $105 from $92, explaining that the executives’ tone was “upbeat.”
- The note to clients said Uber is likely to see its position in self-driving vehicle technology improving.
Uber Technologies (UBER) shares traded at an all-time high Tuesday morning as JPMorgan analysts increased their price target on the ride-sharing firm’s stock after holding discussions with executives.
The analysts increased their price target to $105 from $92, and affirmed their “overweight” rating.
Analysts wrote in a note to clients that they spent time recently talking with CEO Dara Khosrowshahi, CFO Prashanth Mahendra-Rajah, and members of the investor relations team, and found their “tone was upbeat.”
They said the executives emphasized the company was on track or ahead of its three-year targets through next year of mid-high-teens percent gross bookings growth, a mid-30% to 40% increase in EBITDA, and a 90% conversion of EBITDA to free cash flow (FCF).
The analysts added that importantly, they see Uber’s position in autonomous vehicle (AV) technology improving, and believe “Uber is becoming an increasingly valuable partner to AV tech providers.”
Uber Technologies shares recently rose 0.6% to $93.08 after earlier hitting a record $93.60. They have risen more than 50% year-to-date.
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