Morgan Stanley analyst Brian Nowak reiterated his Buy rating on Uber Technologies Inc. last week, setting a price target of $110 per share. He stated that the market is not valuing the company appropriately.
Nowak's analysis indicates the market values Uber's U.S. mobility business at a 2027 adjusted EBITDA multiple of 7x. He believes this is too low given the business's mid-teens growth rate. The analyst noted this represents a sharp discount compared to industry peers, which he says is not justified by Uber's strong fundamentals.
He also pointed out that Uber trades at a 10% valuation discount relative to Lyft, despite Uber being larger, more diversified, and more profitable.
Regarding autonomous vehicle competition, Nowak acknowledged that share prices for both Uber and Lyft might experience volatility as AV development accelerates in 2026. However, he does not expect any material financial impact on Uber for the next 24 months.
Later in the week, BNP Paribas began coverage of Uber with an Outperform rating and a $108 price target. The firm described Uber as "a mobility and delivery winner" despite upcoming autonomous vehicle developments.