Uber Stock Rises Pre-Market On Goldman Sachs’ Top-Pick Tag, Retail Remains Upbeat

Goldman Sachs has reportedly selected Uber Technologies Inc (UBER) as its top pick, saying that its risk-to-reward balance is among the most attractive heading into 2025. Shares of the ride-sharing firm were trading nearly 2% higher in Friday’s pre-market session.

The brokerage has a buy rating with a $96 price target apiece on the stock, which implies more than 56% upside from current trading levels.

“From a stock selection standpoint, we see the most compelling risk/reward in companies that have lagged a robust market environment,” analyst Eric Sheridan said, according to a CNBC report.

“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,” he added.

Goldman anticipates gross bookings and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) to grow at a compounded annual growth rate (CAGR) of 16% and 39% from 2023 to 2026.

Following the development, retail sentiment on Stocktwits continued to trend in the ‘extremely bullish’ territory (76/100).

Most retail chatter on Stocktwits indicated an optimistic take on the stock.

Meanwhile, TD Cowen has reportedly maintained a ‘Buy’ rating on the stock with a $90 price target following its meeting with the company's CFO.

According to the brokerage, Uber's core Mobility business could grow low to mid teens year-over-year, aided by "multiple growth drivers over the next several years.”

Shares of UBER have gained over 5% since the beginning of the year.

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