In a note to clients Tuesday, KeyBanc raised its price target for Uber (NYSE:UBER) to $70 per share, maintaining an Overweight rating on the stock.
Analysts said the price target lift follows the firm's December mobility and delivery survey. The firm surveyed 2,061 consumers in the U.S. on their transportation, food delivery, and grocery service usage and preferences.
The latest survey "showed stable trends in ride-sharing market share, intent to increase trip frequency, and stable category adoption in food delivery, grocery delivery, and grocery pick-up services."
"This supports our view that: 1) market conditions are rationalizing and 2) this should lead to improved EBITDA and FCF generation," the analysts wrote.
"For Overweight-rated Uber, we have raised our 2023E, 2024E, and 2025E EBITDA projections by 1%, 7%, and 2% to $4.0B, $6.1B, and $8.2B to reflect more modest expense progression, resulting in our new PT of $70 (18x 2025E EV/EBITDA)," they added.