By Mackenzie Tatananni

Uber Technologies may have posted mixed first-quarter results, but analysts say Wall Street should be looking at the company's underlying business trends instead of focusing too closely on the numbers.

The firm's earnings topped analysts' estimates, but revenue and gross bookings came in below forecasts. One bright point was an 18% increase in trips -- or the number of completed rides and delivery orders in a given period -- as more users signed up for the platform and existing users harnessed the services more often.

A handful of analysts boosted their price target on Uber shares on the heels of the earnings report on Wednesday, which included upbeat guidance for the current quarter.

Wells Fargo analysts led by Ken Gawrelski raised their price target to $100 from $90 and reiterated an Overweight rating in a note Thursday.

The Wells Fargo team noted that top-line trends remained strong for both Uber's mobility and delivery segments. In their view, Wall Street is likely to focus on Uber's deployment of autonomous vehicles in the near term. The company has been building a foothold in the AV market for nearly a decade.

"We believe the stock is likely to outperform as healthy fundamental trends drive upward estimate revisions," the analysts wrote.

In an environment where intensifying competition forces Uber to become more efficient, Wells Fargo sees the share price rising as high as $126. Conversely, the firm's bear case dictates the price could fall as low as $68 if the same conditions don't materialize.

BofA Securities analysts led by Justin Post raised their price target by $1 to $97 and maintained a Buy rating on Wednesday.

The BoFA team noted that Uber's first-quarter results were impacted by several short-term headwinds, while positive commentary surrounded more important items such as AVs and market share.

The analysts conceded that gross bookings declined 3% from the prior year, driven by factors such as slowing growth in U.S. airport trips.

However, the company's guidance suggests these headwinds will taper off over the next few quarters, with steady volume growth driving the top line, the analysts said. The firm's new price target is meant to reflect a slightly higher estimate for free cash flow in 2026.

Wedbush analysts led by Scott Devitt raised their price target on Uber stock to $85 from $80 on Thursday, but lowered their rating to Neutral from Outperform.

The analysts argued that Uber shares have appreciated considerably over the past few years after the pandemic.

"Notably, in recent periods, the magnitude of beats versus estimates has contracted materially as performance has caught up to investor expectations," they said.

While Wedbush maintains confidence in the ability of Uber's management team, "the business is now well understood," the analysts said. They believe the lack of clear catalysts in the near term will limit upside, curbing further multiple expansion.

Shares of Uber were down 0.7% at $83.06 on Thursday. The benchmark S&P 500 was up 1.4%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 08, 2025 14:50 ET (18:50 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.