Tigress Financial Partners analysts increased their price target on Uber (NYSE:UBER) to $96, maintaining their Buy rating. They highlighted Uber’s strong position in both ride-sharing and delivery sectors, which they believe will continue to fuel user growth and booking trends over the next three years. This optimism follows Uber’s announcement of a $7 billion share repurchase authorization, marking its first profitable year.

Uber’s strategy includes expanding into complementary business lines, enhancing user engagement across its platforms, and increasing the frequency of use. Notably, over one-third of Uber’s customers use multiple products, leading to significantly higher spending. The company is also focusing on growing its subscription services, boosting advertising revenue, and optimizing services with AI.

Significant growth drivers include the ability to cross-sell services such as Uber Eats, where a considerable percentage of users are converted from the ridesharing platform. Grocery and retail bookings are currently at a $7 billion run rate, with the company aiming to upsell these services to more Uber Eats customers.

Uber One membership, a key component of the delivery gross bookings, has seen substantial growth and now includes 19 million members across 25 countries, with members spending over three times more than non-members.

Additionally, Uber’s initiatives to lower user acquisition costs and leverage AI for customer support are expected to enhance margin expansion. The company anticipates a 30-40% average annual adjusted cash flow growth over the next three years, with a conversion rate exceeding 90%.

The analysts also noted that Uber is well-positioned to capitalize on macro trends such as the increase in consumer travel and higher office attendance rates. They predict continued growth from the broader adoption of Transportation as a Service (TaaS), expanding partnerships, and the introduction of new innovative services.

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

× ¿Cómo puedo ayudarte?