Uber Stock: Analysts Bullish Despite Consumer Hesitation

Despite recent mixed signals in the ride-sharing and delivery giant's performance, Uber's stock climbed nearly 10% last week, approaching its 52-week high of $92.17. While Q1 gross bookings increased by 14% to $42.8 billion, this fell slightly short of analyst expectations, attributed primarily to consumer caution amid potential economic slowdown concerns. The company acknowledged consumer uncertainty as a tangible factor affecting performance. Nevertheless, Wall Street remains largely optimistic, with firms like Goldman Sachs issuing a "Conviction Buy" rating with a $110 price target, while Evercore ISI maintains an "Outperform" rating with a $115 target. Cantor Fitzgerald and Citi similarly expressed confidence with price targets of $96 and $102 respectively, citing ongoing product improvements and growth potential.

Strategic Partnerships Fuel Growth Outlook

Uber is pursuing innovative approaches to stimulate demand and develop new revenue streams. The company recently formed a partnership with Turo, the world's largest peer-to-peer car rental marketplace, allowing users to access private vehicle rentals directly through the Uber app across most of the United States. Additionally, Uber announced a strategic alliance with Brazilian food delivery leader iFood, integrating ride services and food delivery within respective apps beginning in late 2025. This partnership represents a significant reversal from three years ago when Uber Eats withdrew from Brazil due to iFood's market dominance. The collaboration aims to leverage iFood's estimated 55 million users alongside Uber's 30 million Brazilian customers, creating substantial cross-platform opportunities despite intensifying competition from new market entrants.

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Source StockWorld