Can Uber's stock hit $100? This analyst lays out the path.

By Emily Bary

Uber's stock is up 150% in a year and one of the S&P 500's biggest gainers over that span, but Jefferies still sees upside

Uber Technologies Inc. shares have surged 150% over the past year, to rank third among S&P 500 index components in that span, but a Jefferies analyst sees further big upside ahead.

Jefferies' John Colantuoni boosted his price target on Uber shares (UBER) to $100 from $95 in a Friday morning note to clients, with his new target representing 33% upside from Thursday's close. The stock is up 3.9% midway through Friday's trading action to be among the S&P 500's SPX largest daily gainers.

Colantuoni is upbeat about the moves Uber has made to grow its mobility offerings, after it had only two ride-share offerings in 2011. Now the company has an expansive suite with products like advance reservations, taxi bookings and an enhanced carpool service.

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"We see additional growth coming from Uber for Business as well as smaller growth bets like high-capacity vehicles, Uber Health, Uber for Teens, and Uber Rent," he wrote.

The company has ambitious goals, according to Colantuoni, including one to onboard every taxi globally by 2025. While he thinks that Uber's core business will grow at a compound annual rate of about 15% over the next three years, he expects that Uber's newer bets will see far faster growth. For example, the taxi business could grow at a 55% annual clip over that span.

He further anticipates that taxis will command a 30% share of bookings for Uber's "new bets" by 2026, compared with about 20% in 2022.

Uber's newer initiatives could help its bottom line as well, Colantuoni said. New bets in mobility could make up over a quarter of growth in earnings before interest, taxes, depreciation and amortization (Ebitda) for the segment.

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"We expect increased adoption of Uber for Business will help funnel users to higher-margin products, with over 40% of corporate travel on Uber happening on premium offerings like Reserve/Comfort/Black," he wrote.

Colantuoni is now one of three Wall Street analysts with a $100 target price on Uber shares, according to a FactSet tally. That's the highest target listed.

-Emily Bary

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04-05-24 1232ET

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