Bank of America Lowers Uber Price Target Following Mixed Q3 Earnings
Bank of America analyst Justin Post has reduced his price target for Uber Technologies (UBER) from $101 to $98, maintaining a 'Buy' rating. The adjustment follows mixed third-quarter results where ride-hailing bookings of $29.5 billion missed Wall Street expectations, despite delivery bookings exceeding estimates and adjusted earnings rising 35% to $0.88 per share. The revision is driven by a lower projected 2027 adjusted earnings per share (EPS) forecast rather than a change in valuation multiples. Uber faces a 'pricing paradox' where regional cost fluctuations—such as insurance savings in California versus high fuel costs and driver shortages elsewhere—create uneven demand and pricing pressures across different markets.
Topics: Earnings Analysis Equity Research Stock Price Target