Needham raised its price target on Uber (NYSE:UBER) to $109 from $100, maintaining a Buy rating as recent trends in pricing and demand strengthen the case for continued growth.
The firm noted that both Uber and Lyft have seen slight quarter-over-quarter increases in ride prices, while demand remains resilient. For Uber, shorter wait times are providing a competitive edge, with the gap between Uber’s efficiency and Lyft’s pricing advantage reaching recent highs.
The price target bump reflects a higher valuation multiple, though still at a discount to where Uber currently trades. According to Needham, near-term market sentiment may hinge on developments in the autonomous vehicle space. Uber and Lyft’s upcoming partnership with May Mobility is viewed as a positive step, broadening the rideshare tech ecosystem. However, competition from Tesla’s expanding robotaxi ambitions and Waymo’s potential solo launches in Miami and Washington, DC could create headwinds for the multiple.
Despite those competitive risks, Needham remains confident in Uber’s ability to grow bookings, assuming consumer demand stays healthy.
