Uber Technologies, Inc. (NYSE:UBER) is one of the most widely held stocks by hedge funds in 2025. Uber Technologies, Inc. (NYSE:UBER) received a rating update from Wedbush analyst Scott Devitt on December 19, who slashed the price target on the stock to $78 from $84 and maintained a Neutral rating on the shares.
In addition, Bernstein analyst Nikhil Devnani reaffirmed a Buy rating on Uber Technologies, Inc. (NYSE:UBER) on December 18 and lifted the price target to $115.00 from $110.00. The analyst based the rating update on various factors, including the company’s strategic positioning in the developing autonomous vehicles landscape, growth outlook, and valuation.
Devnani noted that Uber Technologies, Inc. (NYSE:UBER) is trading at a discounted multiple compared to its earnings power despite competitive noise and increased headlines from peers like Tesla, Waymo, and Zoox, which points towards the market’s overreaction to near-term AV concerns.
He added that the long-term market is expected to paint a fragmented picture among AV players, a structure that Uber Technologies, Inc. (NYSE:UBER) can benefit from because of its platform scale and balance-sheet flexibility. This makes the recent pullback a favorable entry point for investors, according to the analyst.
Devnani further stated that while Uber Technologies, Inc.’s (NYSE:UBER) ongoing investments in its core Mobility and Delivery operations and autonomous vehicle partnerships may constrain incremental margins temporarily, the prospect is likely to support stronger EBITDA outperformance and solid gross bookings growth over time.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. The Delivery segment allows users to order food, while the Mobility segment provides access to Mobility Drivers who provide rides in various vehicles. The Freight segment connects Carriers and Shippers.
While we acknowledge the potential of UBER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
