On Wednesday, Raymond (NSE:RYMD) James analyst Josh Beck reaffirmed a Strong Buy rating on Uber Technologies Inc . (NYSE:UBER) with a consistent price target of $95.00. Beck’s stance comes amidst recent market fluctuations, suggesting investors consider the current dip as an opportunity to bolster their positions in Uber. He pointed out that potential headwinds such as foreign exchange impacts, Los Angeles fires, and adverse weather conditions affecting first-quarter mobility bookings were already anticipated. Beck emphasized the company’s strategic investments aimed at expanding market penetration and user frequency, which he believes will drive long-term value.
Beck highlighted the upward revision of Uber’s first-half fixed currency net (FXN) mobility guidance, which moved from high-teens/low-20s to low-20s percentage growth. This adjustment signals a commitment to investment in areas like suburban markets, shared rides, and the Uber One membership program. These initiatives are part of Uber’s growth strategy and are expected to contribute to its sustained market presence and user engagement.
The analyst also reiterated the mid-term guidance for mid-to-high teens FXN bookings growth and robust EBITDA growth ranging from 30% to 40%. According to Beck, this forecast positions Uber favorably in terms of valuation when compared to its peers, such as DoorDash Inc. (NYSE:NASDAQ:DASH) and Airbnb Inc . (NASDAQ:ABNB). InvestingPro data shows Airbnb trading at a P/E ratio of 44.7x with an impressive gross profit margin of 83.07%. While Airbnb maintains strong revenue growth of 12.9%, multiple InvestingPro Tips indicate it’s trading at high valuation multiples across various metrics.
Beck’s analysis underscores confidence in Uber’s growth trajectory and its ability to navigate short-term challenges while focusing on long-term profitability and market share expansion. The $95.00 price target set by Raymond James reflects this positive outlook and suggests a potential upside from the current trading levels of Uber stock.
Uber Technologies Inc., a global leader in ride-hailing and mobility services, continues to evolve its business model, exploring new service offerings and market segments to maintain its competitive edge in the rapidly changing transportation industry.
In other recent news, Airbnb has been the focus of several significant developments. Cantor Fitzgerald maintained an Underweight rating on Airbnb, citing the company’s extensive investments in new market expansion as a potential catalyst for future revenue growth. However, the firm has reduced its price target to $117, reflecting a cautious approach while awaiting signs of improvement in Airbnb’s growth trajectory.
Simultaneously, Airbnb is under investigation in Spain for failing to remove thousands of unregulated rental listings. The probe is part of a broader crackdown against vacation rentals facilitated by platforms like Airbnb, which are blamed for exacerbating housing shortages and escalating real estate prices.
In the meantime, Truist Securities has slightly lowered its price target for Airbnb to $123, following updated earnings projections for the upcoming years. The firm anticipates the company’s adjusted EBITDA to reach $4.325 billion in 2025 and $4.961 billion in 2026.
On a positive note, DA Davidson has increased its price target for Airbnb to $131, reflecting a broader re-rating in the large cap technology sector and slight increases in the firm’s financial projections for Airbnb. The firm expects Airbnb’s 2025 revenue to reach $12,345 million, up 11.7% year-over-year, and the 2025 adjusted EBITDA to be $4,380 million, representing a 35.5% margin. These developments indicate a dynamic period for Airbnb as it navigates various challenges and opportunities.
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