Oppenheimer analyst has shown confidence in Uber Technologies, Inc. (UBER) by raising the price target to $95 from $90 and maintaining an Outperform rating. This bullish outlook stems from a recent survey that indicates a significant opportunity for growth in restaurant delivery.
The analyst found that despite economic pressures, a whopping 71% of non-Uber Eats users are unaware of the savings offered by monthly subscriptions. This presents a prime opportunity for user acquisition through enhanced marketing efforts, tapping into a large pool of potential customers.
While grocery delivery lags slightly behind restaurant delivery (57% vs. 67%), the analyst remains optimistic. With 73% of consumers preferring in-person grocery shopping, Uber still has room to grow in this market.
Based on these favorable restaurant delivery trends, the analyst has increased the estimated delivery share gains for 2025 to 58 basis points, a significant upgrade from the previous 46 basis points. This positive outlook translates into a 2% increase in Uber Delivery gross transaction value (GTV) for 2025 and 2026. This upward revision anticipates greater frequency opportunities and expected consumer tailwinds from potential rate cuts in 2025.
In a recent partnership, Uber joined forces with Spirit Halloween to offer on-demand delivery during the Halloween season, providing Uber One members with discounts and perks.
Investors looking to gain exposure to Uber can consider the iShares Trust iShares U.S. Transportation ETF (IYT) and the Franklin Disruptive Commerce ETF (BUYZ).
Uber shares closed lower by 1.73% to $75.75 on Friday.
