On May 29, BMO Capital Markets analyst Brian J Pitz. reiterated an ‘Outperform’ rating on Uber Technologies, Inc. (NYSE:UBER) and kept his $101 price target.
According to the analyst, several factors support Uber’s growth prospects amid competition in the sector. International expansion plans and the acquisition of Dantaxi, Denmark’s largest taxi company, are some developments that set the company for growth.
The acquisition of Dantaxi is expected to strengthen Uber’s presence in Europe by improving vehicle match rates. Pitz is also optimistic about the positive trends in autonomous vehicle adoption in Austin. Uber’s innovation across Mobility and East segments is also expected to strengthen its edge in the sector.
Pitz has already downplayed the impact of Tesla launching 10 -20 robotaxi in Austin. That’s because Uber is already working on introducing hundreds of Waymo vehicles, which will strengthen its market position. Additionally, a strategy to drive international scale sets the company apart as a winner in the AV space.
Uber is a mobility company that offers ride-hailing services, connecting passengers with drivers through a mobile app. It also provides food delivery services (Uber Eats) and services for businesses to manage rides, meals, and local deliveries.
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