Cantor Fitzgerald Starts Uber Inc. (UBER) at Overweight

Cantor Fitzgerald analyst Deepak Mathivanan initiates coverage on Uber Inc. (NYSE: UBER) with a Overweight rating, PT $90.00.

The analyst comments "We are initiating coverage of UBER with an Overweight rating and $90 price target. Our bullish thesis is predicated on UBER’s: 1) solid growth above mid-teens CAGR and margin expansion over the next 2-3 years and 2) strong competitive moats in rideshare & delivery that we think will enable new long-term opportunities (for growth & margins) through market expansion, partnerships, M&A, etc., in adjacent categories. We are not in the “autonomous is not a problem” camp, but find comfort in the extremely slow pace that transportation technologies move given the real-world risks and cost of capital needs. UBER’s valuation multiple has somewhat recovered recently, but at 28x FY25E GAAP P/E & FY23-26E GAAP EPS CAGR of 57%, we think the risk/reward is highly attractive. Our 12-month PT of $90 is based on 22x FY25E adjusted EBITDA."

For an analyst ratings summary and ratings history on Uber Inc. click here. For more ratings news on Uber Inc. click here.

Shares of Uber Inc. closed at $71.89 yesterday.

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