Uber's Gross Bookings Decelerate: Analysts Raise Price Targets On 'Sustained Momentum,' AV Strength

Uber Technologies Inc (NYSE:UBER) reported its first-quarter results on Wednesday.

Here are some key analyst takeaways.

BofA Securities On Uber Technologies

Analyst Justin Post maintained a Buy rating, lifting the price target from $96 to $97.

Uber reported a broadly in-line quarter, with bookings, revenues, and EBITDA of $42.8 billion, $11.53 billion, and $1.87 billion, "all within 1% of Street ests," Post said in a note. The company's trip growth was stable at 18%, while the EBITDA margin expanded nearly 3 points year-on-year to 16%, he added.

The analyst stated that gross bookings per trip declined 3% year-on-year and 2% sequentially. "Bookings guidance suggests these factors stabilize q/q from here, with steady volume growth driving the top line."

JPMorgan On Uber Technologies

Analyst Doug Anmuth reiterated an Overweight rating, while raising the price target from $80 to $92.

After six consecutive quarters of more than 20% growth, Uber's gross bookings decelerated to 18% on a constant currency basis in the first quarter, Anmuth said. The slower growth in gross bookings was mainly due to lower pricing, with insurance increases in Mobility easing, "which should drive volume growth in the long-term," he added.

The company's pricing was also impacted by a shift in international trips, "given softness in US inbound travel," the analyst stated. "Importantly, Uber is seeing higher utilization of Waymo vehicles in Austin than the ~24 trips/vehicle/day in SF, which should lead to increasing penetration of Waymo and other AV providers on the Uber network over time."

Check out other analyst stock ratings.

DA Davidson On Uber Technologies

Analyst Tom White reaffirmed a Buy rating, while raising the price target from $80 to $98.

Uber reported its first-quarter EBITDA slightly ahead of consensus, White said. Mobility gross bookings decelerated by 400 basis points, driven by the company's "efforts to improve affordability (partly funded by lower insurance cost growth) and greater mix of Intl. trips," he added.

Although Uber is modulating its price hikes in Mobility, management indicated that there are "no significant signs of softening consumer demand or spending across both its segments," the analyst wrote. Management guided to second-quarter gross bookings of 16%-20% and adjusted EBITDA of $2,020-$2,120 million, versus consensus of $2,041 million, he added.

Needham On Uber Technologies

Analyst Bernie McTernan maintained a Buy rating, lifting the price target from $90 to $100.

Uber witnessed growing audience engagement and moderating insurance costs that helped keep prices lower, McTernan said.

"UBER’s focus on affordability and geographic expansion, particularly into suburban and lower-density markets, has helped sustain momentum, with new product offerings like Uber Reserve, Wait & Save, and the integration of taxis in over 500 cities worldwide further diversifying the portfolio," the analyst wrote. He noted that Uber has reached an annual run rate of 1.5 million AV trips across both mobility and delivery.

UBER Price Action: Shares of Uber Technologies had declined by 0.96% to $82.90 at the time of publication on Thursday.

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