Ride-hailing giant Uber Technologies ($UBER) kicked off the year with a bang after Goldman Sachs added the stock to its U.S. Conviction List. Five-star analyst Eric Sheridan sees Uber navigating the rise of autonomous vehicles by leveraging its growing partnerships, which includes an expanded deal with Google-backed Waymo ($GOOGL). Goldman predicts that Uber’s mobility bookings could grow by 15-20%, and delivery bookings could rise by about 15% annually over the next few years.
Goldman highlighted Uber’s ability to scale its markets, improve profits, and leverage its platform for cross-selling, which would create a “flywheel effect” where success in one area boosts others. The firm also believes that Uber is on track to meet its 2024 investor day promises that focus on sustained growth, better margins, and stronger free cash flow.
With a $96 price target, Goldman sees Uber as being well-positioned for success. Despite concerns about autonomous vehicles taking over, Uber’s strategic partnerships and ability to innovate make it likely to stay ahead in the transportation market.
Not All Analysts Agree
Unsurprisingly, not all analysts agree. Indeed, JMP Securities analyst Andrew Boone, who also has a five-star rating, downgraded Uber to Market Perform from Outperform due to a major tech shift in 2025 as autonomous vehicles and generative AI gain traction. Boone believes autonomous vehicles will provide a superior consumer experience, and Waymo’s rapid expansion poses a challenge to Uber in the ride-share market.
Although Waymo is still too small to significantly affect Uber’s bottom line, Boone argues that Uber’s valuation may stay limited until it better adapts to this transition. The analyst sees the shift toward autonomous vehicles as a key hurdle for Uber in maintaining its competitive edge.
Is UBER a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 33 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 7% rally in its share price over the past year, the average UBER price target of $93.35 per share implies 49.4% upside potential.
