This ride-sharing giant is a buy and can surge more than 25%, Stifel says

Stifel initiated coverage of Uber with a buy rating and a $110 price target, implying a 27% upside from Tuesday's close, based on its view of Uber as a growing 'super app' with multiple use cases including ride-hailing, food delivery, and grocery services. The firm sees minimal near-to-medium term risk from autonomous vehicles, while highlighting delivery and advertising as key growth drivers, expecting Uber to meet its three-year financial targets set in early 2024. With Uber shares already up 43% YTD, the majority of analysts covering the stock maintain a bullish outlook.

Analysis

Stifel has initiated coverage on Uber (UBER) with a buy rating and a $110 price target, implying a potential 27% upside from Tuesday's closing price. This positive stance is rooted in the view of Uber evolving into a 'super app' with multiple utility drivers, including ride-hailing, food delivery, grocery services, and integrated advertising. Analyst Mark Kelley identifies delivery and advertising as key future growth segments, with initiatives like Uber One and increased supply expected to drive delivery bookings and aid customer acquisition, particularly in less dense areas. While the long-term risk from autonomous vehicles remains unclear, Stifel perceives 'minimal risk' in the near-to-medium term. The firm also anticipates Uber will continue progressing towards its three-year financial targets set in early 2024. This outlook is broadly supported by the market, as LSEG data shows 43 out of 53 analysts rate Uber a buy, even after the stock's significant 43% surge year-to-date in 2025.

Key Decisions for Investors

• Investors should consider the 27% upside potential to Stifel's $110 price target, while also factoring in the stock's substantial 43% year-to-date rally.
• Monitor the growth and profitability trends in Uber's delivery and advertising segments, as these are highlighted as crucial drivers for achieving its 'super app' vision and financial targets.
• Assess the evolving landscape of autonomous vehicles, as Stifel acknowledges this as an unclear long-term risk factor, despite minimal perceived impact in the near-to-medium term.