Wells Fargo Updates Outlook on Uber, Predicts Explosive Share Price Growth
In a recent update to clients, Wells Fargo analysts have raised their price target for Uber (UBER) to $100 from $90, with a potential share price surge to as high as $126. This forecast represents a more than 52% increase from Uber’s closing price of $82.81 on Friday. The analysts, led by Ken Gawrelski, have reiterated an overweight rating on the $173 billion ride-hailing company, citing competition as a driver of company efficiencies.
“We believe the stock is likely to outperform as healthy fundamental trends drive upward estimate revisions,” the analysts stated in their note.
The update follows Uber’s first-quarter earnings report, which exceeded analysts’ expectations with earnings per share of $0.83, well above the consensus forecast of $0.51. The company reported $11.5 billion in revenue for Q1, marking a 14% year-over-year growth. However, Uber fell slightly short of the anticipated revenue of $11.6 billion for the quarter.
One standout metric from the report was that users booked over three billion trips, an 18% increase from the first quarter of 2024. The Wells Fargo team highlighted strong top-line trends in both Uber’s mobility and delivery segments, noting that the company’s planned deployment of autonomous vehicles could attract more investor interest in the near future.
As investors keep a close eye on Uber’s performance, the company’s stock is poised for significant growth potential according to Wells Fargo’s updated outlook. The analysts’ bullish stance on Uber reflects confidence in the company’s ability to capitalize on market opportunities and deliver strong financial results.
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Image credit: Midjourney.