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Jefferies lifts Uber PT to new Street high amid expanding Mobility product suite

Published 2024-04-05, 04:56 a/m
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Jefferies analysts on Friday upped their price target on Uber Technologies (NYSE:UBER) from $95 to $100, marking a new Street high.

The investment bank said UBER has significantly broadened its Mobility offerings, growing its product portfolio from merely two options in 2011 (UberX and Uber Black) to around 20 at present.

This diversification into various use cases not only enables Uber to attract new customers but also promotes increased usage through the adoption of multiple products. Moreover, by offering alternatives for a wider range of driving occasions, Uber has effectively expanded its Total Addressable Market (TAM), according to Jefferies' assessment.

“The strategy is working, with Bookings from new mobility products (or New Bets) increasing from $2.3B in FY21 to $8.5B in FY23, which represents 90% annual growth and now comprises 12% of Mobility Bookings (6% in '21),” analysts noted.

“Key new offerings include Reserve, Taxis, 2/3 wheelers, and XShare, which each generate over $1B in Bookings (ARR),” they highlighted.

The introduction of new products by the ride-hailing giant is projected to boost the annual growth rate of Mobility Bookings and EBITDA by 4% and 6% respectively, through to 2026, “supporting faster growth and upside to street estimates,” said analysts.

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