UBER Stock Just Received An Upgrade – Why This Analyst Sees A 25% Upside Potential

• Fox Advisors noted that a higher rate of investment over the past year is poised to contribute more consistently to profit growth.
• Morningstar analyst Mark Giarelli stated that top-line momentum and quantifiable network-effect metrics remain robust, reinforcing Uber's marketplace flywheel.
• Uber CEO Dara Khosrowshahi dismissed the impact of autonomous-vehicle companies deploying robotaxis on their own platforms on Uber’s business, noting that there is enough room for multiple players. 

Shares of Uber (Uber) drew investor attention on Monday after Fox Advisors analyst Steven Fox upgraded the stock to ‘Outperform’ from ‘Equal-Weight’ with a $95 price target, implying a 25% premium on its Friday’s closing price.

The firm argued that a higher rate of investment over the past year is poised to contribute more consistently to profit growth.

Fox Advisors stated that Uber may have just "topped off" by expanding into hotel bookings, acquiring the parking marketplace SpotHero, and taking other strategic actions to position its rideshare platform for a hybrid, autonomous future.

Wall Street Bets On Uber

Morningstar analyst Mark Giarelli stated that top-line momentum and quantifiable network-effect metrics remain robust, reinforcing Uber's marketplace flywheel. However, he cautioned that current strength does not guarantee Uber a growing role in an increasingly convenience-driven economy shaped by autonomous vehicles. 

The analyst also pointed out that Uber One memberships now account for half of all mobility and food bookings, and that monthly active platform consumers grew 17% year-over-year, well above 2023-24 trends. Giarelli called this strong membership growth a positive that enhances the network and keeps demand engaged as Uber pursues autonomous partnerships.

Morningstar maintained its narrow moat rating and $85 fair value estimate per share, balancing Uber's core marketplace strength and profitable growth in rides and food delivery against its view that autonomous vehicle companies like Waymo and Tesla may bypass Uber to control the rider relationship directly. 

According to data from Koyfin, 45 of the 53 analysts covering Uber rate it ‘Buy’ or higher, while seven rate it ‘Hold’ and one rates it a ‘Sell.’ The 12-month average price target on the stock is $105.01, representing a potential upside of nearly 39% from the last close.

Uber Earnings At A Glance

Uber delivered a stellar first-quarter 2026 performance last week, blending robust demand growth with accelerating profitability that outpaced revenue headwinds. 

Revenue for the quarter climbed 14% year-over-year to $13.2 billion, slightly missing consensus estimates of $13.28 billion due to a roughly nine-percentage-point drag from business model changes. However, gross bookings surged 25% to $53.7 billion, driven by gains across Mobility and Delivery segments and a 17% increase in monthly active users.

Adjusted earnings per share (EPS) jumped 44% to $0.72, beating Wall Street's forecast of $0.69, while underlying free-cash-flow generation remained robust and the company returned about $3 billion to shareholders via buybacks.

For the second quarter, Uber expects gross bookings of $56.25 billion to $57.75 billion and adjusted earnings of $0.78 per share to $0.82 per share. 

Uber CEO Dara Khosrowshahi also dismissed the impact of autonomous-vehicle companies deploying robotaxis on their own platforms on Uber’s business, noting that there is enough room for multiple players. 

Uber has partnerships in place with multiple robotaxi companies to deploy robotaxis on its platform.

Uber Stock: What Retail Thinks About It?

On Stocktwits, retail sentiment surrounding the stock has remained in the ‘bullish’ territory, while message volume has also stayed in the ‘extremely high’ zone in the past 24 hours.

On Stocktwits, retail chatter about Uber has risen by 71% over the past week.

Shares of Uber have declined more than 6% so far this year.

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