Goldman Sachs thinks Uber’s risk-to-reward balance is among the most attractive heading into 2025. The bank listed the ride sharing company as a top pick in a Thursday note. Analyst Eric Sheridan has a buy rating and a $96 per share price target on the stock, which implies more than 56% upside from Thursday’s close. “From a stock selection standpoint, we see the most compelling risk/reward in companies that have lagged a robust market environment,” Sheridan said. “Uber is mired in a series of short-term debates (pricing inflation and competition impact on mobility growth) and medium/long term industry concerns (the impact of autonomous vehicles on supply/demand if not outright disintermediation). Against that backdrop, we see a company that can continue to deliver on its February 2024 Investor Day commitments despite the rise of autonomous vehicles,” the analyst added. UBER YTD mountain Uber stock. Sheridan forecast gross bookings and adjusted EBITDA expanding at a compounded annual growth rate of 16% and 39% over a period of 2023 to 2026. One of the key themes heading into next year and beyond that support Sheridan’s optimistic outlook for Uber is the blurring of lines between advertising and e-commerce models, “with both pivoting toward embracing partnership-type models rather than competing for direct traffic and transactions.” “We expect continued scaling of AMZN’s advertising business and long-growth runways for UBER, DASH, CART, & LYFT with retail media capturing more budgets as digital advertising platforms (GOOGL, META, PINS) continue to innovate around social commerce,” he said. Uber shares have lagged this year, losing 0.2%, while the S & P 500 is up around 27%. Analysts generally like the stock, with 49 of 55 who cover the ride sharing giant assigning it a buy or strong buy rating, LSEG data shows. The average analyst price target also implies upside of 47%.
Uber is a top pick heading into 2025 with more than 50% upside, Goldman Sachs says