Uber is a “must-own” stock, this analyst says

In a Nov. 5 update, Roth Capital Markets analyst Rohit Kulkarni reiterated his “Buy” rating and US $110.00 price target on Uber Technologies (Uber Stock Quote, Chart, News, Analysts, Financials NYSE:UBER) following the company’s third-quarter results, describing the stock as a “must-own internet large cap trading at a 5% free cash flow yield.”

Uber shares fell 5% after the earnings release, which Kulkarni called a “small beat and bracket” report showing bookings, trips, and active users all ahead of expectations.

He said bookings growth accelerated to a six-quarter high, while Uber generated more than US$2-billion in free cash flow and over US$1-billion in operating income, reflecting a strong combination of growth and profitability. The company’s fourth-quarter outlook implies growth of more than 20% at the high end, above Roth’s forecast.

“We would be buyers on current weakness,” Kulkarni said, citing a “highly asymmetric risk/reward” profile around the high-US$80s to low-US$90s range, implying a high-teens EBITDA multiple.

Kulkarni noted that at about US $94.00 per share, Uber trades at roughly 19x 2026E FCF and 24x 2026E GAAP EPS. He said user and usage trends remain healthy, with “insurance and regulatory catalysts along with robotaxi partnership milestones ahead.” Uber continues to track above its three-year mid- to high-teens growth framework, though its planned shift from Adjusted EBITDA to Adjusted operating income reporting in 1Q 2026, and increased balance sheet investment in autonomous vehicle fleets and grocery and retail initiatives, could moderate near-term margin expansion.

On autonomous vehicles, Kulkarni said Uber’s breadth of partnerships “demonstrates that ridesharing platforms are becoming an increasingly critical centralized hub for robotaxi operators.” Management expects AV deployments in at least 10 cities by the end of 2026, with Phoenix, Austin, and Atlanta already growing twice as fast as the U.S. average and showing early signs of higher driver earnings.

Kulkarni said that Uber remains partly insulated from macro headwinds, with “healthy consumer trends in both Mobility and Delivery” and structural benefits from cross-selling under Uber One. Cross-platform consumers, those using both services, spend three times more and retain 35% better than single-product users. Rides rose 21% year-over-year in Q3, the fastest pace since 2023, while Delivery grew 24%, its strongest growth in four years.

On regulation, he said the environment is improving, highlighting California’s SB 371, which lowers uninsured/underinsured motorist coverage limits for rideshare platforms from US$1-million to US$60,000 per individual and US$300,000 per accident. Kulkarni said this continues positive momentum following similar rulings in Georgia and Nevada.

Competition remains elevated but manageable. He cited Amazon’s expansion of its Fresh and same-day delivery services and DoorDash’s growth in Europe via Deliveroo as signs of an evolving landscape rather than a structural threat. Management sees “a large market opportunity” in grocery and retail delivery, noting that most Uber users have not yet tried those services.

Kulkarni forecasts Adjusted EBITDA of US$8.73-billion on revenue of US$52.0-billion in fiscal 2025, improving to US$11.68-billion on US$60.2 billion in 2026. He said the company’s performance supports continued confidence in Uber’s long-term growth and cash-flow profile.

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