DBS reiterates Buy on Uber Technologies (UBER)

On May 19, DBS analyst Nashrullah Putra Sulaeman reiterated a Buy rating on Uber Technologies Inc. (NYSE:UBER) with a price target of $95.

The analyst highlighted Uber’s strong financial performance, particularly its better-than-expected adjusted EBITDA in its recently reported Q1 2025 results. Although Q1 revenue growth was on expected lines, operating performance benefited from mobility growth and cost discipline. The analyst liked the company’s outlook for further margin expansion and extrapolated it to a potential for long-term profitability.

The analyst noted two other factors that are very important for Uber's investment case. The first is Uber’s dominance in the US and Canadian markets, with a 70% share. The second factor is Uber’s diversification into delivery and freight, beyond the mobility business, which gives the company a competitive edge and leverage between these businesses.

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.

While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UBER and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.