Uber: BofA cuts its target price

(CercleFinance.com) - Bank of America announced on Tuesday that it had reduced its price target for Uber from $96 to $93, while renewing its buy recommendation on the stock.


In a research note, the analyst recalls that the mobility specialist's shares fell by 2% in 2024, significantly underperforming the S&P 500 index, due to concerns surrounding the rise of autonomous vehicles.

While the share price has recovered 14% since the start of the year, BofA believes that these fears are exaggerated, as illustrated by the share's valuation, which has returned to a Price/FCF multiple of 15x, compared with 29x for the 'FANG', a group made up of Meta (Facebook), Amazon, Netflix and Alphabet (Google).

Among the positive elements emerging at the dawn of this new financial year, the intermediary points to the prospect of possible deregulation measures with Trump's return to the White House, and a strengthening of margins that could justify further redistributions to shareholders.

On the risk side, the professional says he is concerned about the possible arrival of a highly automated Tesla Level 4, Waymo's entry into new markets and a tightening of immigration laws, which could tighten the job market.

Uber is due to publish its fourth-quarter results on Wednesday, February 5.

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