Jefferies Sees Upside in Uber (UBER) from Market Expansion, Reiterates Buy Rating

On June 4, Jefferies analyst John Colantuoni maintained a Buy rating on Uber Technologies Inc. (NYSE:UBER) with a price target of $100. He views Uber’s strategy to expand beyond major cities into underserved markets as a key growth driver.

Colantuoni expects Uber’s expansion into smaller markets, where ridesharing and delivery services are less common, to drive long-term revenue growth. He estimates that this could raise annual sales by 4% through 2030. The company is working to improve driver availability and adopt new technologies, such as autonomous vehicles, to make its services more efficient.

Colantuoni notes that Uber is working to expand its customer base by introducing new products and investing in driver incentives and platform improvements. With these efforts, the company targets to strengthen its presence in both ride-hailing and delivery services.

He also points to Uber’s integration of taxis as a strategy to increase market share. While competition, including potential entrants like Tesla, may create short-term challenges, Jefferies remains confident in Uber’s long-term strategy.

In light of these factors, Colantuoni indicates that Uber’s fundamentals continue to support growth, justifying his $100 price target.

Uber Technologies Inc. (NYSE:UBER) is a technology platform that utilizes its vast network, cutting-edge technology, and operational expertise to facilitate transportation and logistics services. The company offers ride-hailing, food delivery, and freight transportation, with key segments including Uber Eats for food delivery, Uber Freight for logistics, and advancements in autonomous vehicles and aerial ridesharing.

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Disclosure: None.