Why Uber Could Keep Climbing: Tax Breaks, AV Partnerships, Strong Bookings Fuel Analyst Optimism

BofA Securities analyst Justin Post maintained a Buy rating on Uber Technologies (NYSE:UBER) and increased the price target from $97 to $115 on Tuesday.

Uber remains a top pick for 2025 for Post. The price boost reflects Meta Platforms Inc (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN), Netflix Inc (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) (once collectively known as FANG) multiple expansion, as per the analyst. However, the multiple is still a discount to FANG comps given Uber’s higher multiple on GAAP earnings.

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Post said optimism about Uber’s autonomous vehicle (AV) position can grow, given its AV partnerships globally — it is crossing 20, its proven ability to scale AVs with Waymo, signs of broader proliferation of L4 AV tech, strong booking growth, and Uber One traction suggesting subscriber lock-in.

The “No Tax on Tips” clause in the Big Beautiful Bill extends benefits to 1099 workers — not just W-2 employees — including gig workers like Uber and LYFT Inc (NASDAQ:LYFT) drivers, the analyst highlighted. He said even those who don’t itemize deductions will be eligible for federal income tax savings, with a maximum deduction capped at $25,000.

Post estimated that U.S.-based Uber drivers will generate approximately $42 billion in earnings this year. If tips average 7% on an estimated $88 billion in U.S. gross bookings for 2025, the analyst projected that total tips would reach around $5.7 billion, or 14% of driver earnings. He estimated that an average federal tax rate of 18% implies about $1 billion in potential tax savings, equivalent to a 2.5% boost in driver pay.

Post expects the tax break to modestly increase driver supply, indirectly supporting Uber’s take rate.

According to Bloomberg, the analyst highlighted that Moove — an Uber-backed autonomous vehicle (AV) fleet manager — is raising $1.2 billion to support its partnership with Waymo, covering AVs that it plans to own and operate. While the initial rollout focuses on Phoenix and Miami, Post noted the scope could widen.

Moove remains a key partner in Uber’s AV ambitions, he said. Post sought clarity over whether Moove deploys these vehicles exclusively on Waymo’s platform or also on Uber’s. Regardless, this development reinforced his view that multiple AV suppliers will coexist long-term. A successful raise by Moove may also prompt other OEMs to accelerate investment in Level 4 automation, Post added.

Post projected fiscal 2025 sales of $50.7 billion and EPS of $3.04.

UBER Price Action: UBER stock is up 0.29% at $96.96 at publication on Tuesday.

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