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Uber Technologies is named a top pick for 2025 by Goldman Sachs

Dec. 13, 2024 7:40 AM ETUber Technologies, Inc. (UBER) StockBy: Clark Schultz, SA News Editor9 Comments

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Goldman Sachs called Uber Technologies (NYSE:UBER) one of its top stock picks for 2025. The shot of confidence from the firm followed a 15% decline in Uber's (UBER) share price over the last six weeks, due in part to robotaxi developments.

Analyst Eric Sheridan thinks Uber's (UBER) risk-to-reward balance is among the most attractive heading into 2025. "From a stock selection standpoint, we see the most compelling risk/reward in companies that have lagged a robust market environment," he noted.

Sheridan highlighted that Uber (UBER) is mired in a series of short-term debates, including discussion on pricing inflation and competition impact on mobility growth, as well as medium/long-term industry concerns over 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," countered Sheridan.

In the long term, Uber (UBER) is expected to benefit from a blurring of the lines between advertising and e-commerce models.

Sheridan and his team forecast gross bookings growing at a compounded annual rate of 16% from 2023-2026 and adjusted EBITDA expanding at a compounded annual growth rate of 39% over the same period. Goldman Sachs has a Buy rating on the mobility stock and a price target of $96.

Shares of Uber Technologies (UBER) were up 0.67% in premarket trading to $61.82 vs. the 52-week range of $54.84 to $87.00.