Uber is loaded with catalysts, this analyst says

Roth Capital Markets analyst Rohit Kulkarni reiterated a “Purchase”  ranking and US $110.00 12-month worth goal on Uber Applied sciences (Uber Applied sciences Inventory Quote, Chart, Information, Analysts, Financials NYSE:UBER) forward of the corporate’s fourth-quarter earnings launch, scheduled for Wednesday, Feb. 4, earlier than market open.

In a Feb. 3 earnings preview, Kulkarni stated Uber will report fourth-quarter outcomes with extra disclosure round adjusted working revenue and adjusted EPS, although the corporate is not going to present adjusted EBITDA steering. He stated that omission may contribute to a loud post-earnings response, however argued the risk-reward stays engaging at present ranges, with Uber shares buying and selling close to roughly 23x 2027E P/E and about 15x 2027E EV/EBITDA.

Kulkarni stated near-term upside drivers embody potential FX tailwinds from a weaker U.S. greenback, the just lately introduced grocery supply partnership with Kroger, and progress on non-Waymo robotaxi initiatives involving Avride, WeRide and Pony.ai. He additionally pointed to developments inside Uber’s autonomous car and AI labs as longer-term catalysts…

Kulkarni stated near-term upside drivers embody potential FX tailwinds from a weaker U.S. greenback, the just lately introduced grocery supply partnership with Kroger, and progress on non-Waymo robotaxi initiatives involving Avride, WeRide and Pony.ai. He additionally pointed to developments inside Uber’s autonomous car and AI labs as longer-term catalysts.

For the quarter, Kulkarni stated he expects a constructive market response if gross bookings exceed US$53.2-billion, income progress is at or above 20% 12 months over 12 months, and working revenue tops US$1.85-billion. Looking forward to first-quarter steering, he stated gross bookings above US$51-billion on the midpoint and adjusted EPS above US$0.75 would doubtless be obtained positively.

Kulkarni stated traders can even be centered on mobility and supply take charges, significantly if funding depth rises in both phase amid aggressive pressures from Waymo in rides or Amazon Recent in supply. He added that the roughly 2% weakening of the U.S. greenback towards main currencies within the fourth quarter of 2025 ought to translate right into a extra beneficial first-quarter gross bookings outlook.

Addressing the inventory’s current range-bound efficiency, Kulkarni famous that Uber shares have largely traded between US$80.00 and US$100.00 since Could 2025, regardless of regular upward revisions to Road expectations for gross bookings, income and EBITDA over each 2025 and 2026. He stated a step-change in gross bookings progress or tangible progress in robotaxi or autonomous supply may assist break the shares out of that vary.

Kulkarni added that Uber’s mixed rides and supply platform may show advantageous throughout an investment-heavy cycle, drawing parallels to the advantages seen when meals supply was scaled in 2018. He stated he will likely be waiting for up to date disclosure on what number of supply customers are first coming into the ecosystem by grocery and retail, in addition to commentary from massive grocers on balancing first-party supply with third-party platforms corresponding to Uber.

From a valuation perspective, Kulkarni stated Uber shares are buying and selling close to the center of their current vary, having traded between roughly 13x and 19x EV/EBITDA over the previous 12 months.

Kulkarni forecasts that Uber will generate US$8.73-billion in Adjusted EBITDA on income of US$51.97-billion in fiscal 2025, bettering to US$11.68-billion in Adjusted EBITDA on income of US$60.23-billion in fiscal 2026.

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