Sep 27, 2024, 4:11 PM
Sep 27, 2024, 4:11 PM

Oppenheimer boosts Uber's price target amid rising food delivery demand

Highlights
  • Oppenheimer raised Uber's price target to $95, maintaining an Outperform rating.
  • A survey revealed that 71% of non-users are unaware of savings from subscriptions, indicating a marketing opportunity.
  • The increase in delivery gross transaction value and favorable trends suggest potential growth for Uber, despite a recent decline in share price.
Story

Oppenheimer has raised its price target for Uber Technologies, Inc. to $95 from $90, maintaining an Outperform rating. This adjustment follows a survey indicating a significant opportunity for restaurant delivery, with 71% of non-users unaware of potential savings from monthly subscriptions. The survey highlights a marketing gap that could lead to new user acquisition. Additionally, the analyst noted that grocery delivery is lagging behind restaurant delivery by ten percentage points, with a preference for in-person shopping among 73% of respondents. The analyst has also increased the estimated delivery share gains for 2025, reflecting favorable trends in restaurant delivery. As a result, Uber's Delivery gross transaction value for 2025 and 2026 has been raised by 2%, anticipating consumer tailwinds from expected rate cuts in 2025. Recently, Uber partnered with Spirit Halloween to offer on-demand delivery, providing discounts and perks for Uber One members during the Halloween season. Despite these positive developments, Uber's shares closed lower by 1.73% to $75.75 on Friday, indicating market volatility amidst broader economic pressures.

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