Uber Technologies Inc. (NYSE: UBER), has made a great start in this new year, but the gains it’s had so far may not be enough to keep the stock going in 2025.
Girard Advisory Services’ chief investment officer expects ride-sharing stocks to continue offering positive surprises throughout the rest of the year.
The market veteran, on CNBC’s “Power Lunch”, listed Uber as one of his top conviction ideas for next year.
Uber’s rapid growth is not appreciated
Timothy Chubb believes that Uber’s stock will continue to rise in value over the next few months, as the “fundamentals of its core business” are performing extremely well.
He believes that the market undervalues Uber’s user growth, engagement, and free cash flow.
The ride-hailing company missed its quarterly profit estimates last month and gave a muted guidance on bookings for the first quarter of fiscal 2019.
The Girard Advisory analyst believes that Uber Technologies Inc.’s expected decline is only temporary. He continues to be optimistic about the company’s long-term prospects.
The shares of this multinational transport company are not attractive to income investors because they don’t pay dividends.
Uber expands into robotaxi service
Uber recently launched a robotaxi in Austin, Texas in partnership with Waymo – and is planning to launch a service similar in other cities before the year’s end.
Timothy Chubb, of Girard Advisory Services says that the New York-listed firm can benefit significantly if it commercialises autonomous vehicles in the United States.
The chief investment officer believes that Uber’s stock will trade at more than $100 in the first quarter of next year. This is a 31 percent increase from its current level.
Wall Street appears to be in agreement with Chubb, as the consensus rating for Uber’s shares is currently “buy”.
What is the value of Uber in 2025 and beyond?
Uber’s stock currently sells for 16 times its earnings. This isn’t particularly affordable compared with the historical ratio of under 10.
The company, based in San Francisco, California is still worth investing at its current level, as it has expanded into advertising and robotaxis to diversify their revenue stream.
Uber’s dominance in the ride-sharing industry and in food deliveries, which continue to generate double-digit revenue increases despite its global reach, makes it reasonable to expect that the share price will rise further by 2025.
Uber’s share price has increased by more than 250% since the Pandemic.
The post Uber Stock: Could it exceed $100 by 2025? This post may change as new updates are released
This site is for entertainment only. Click here to read more
