- Stifel reportedly raised its price target to $124 from $116.
- Analysts reportedly said that some headlines intra-quarter related to autonomous cars pressuring the stock down a bit, but its third-quarter results “look reasonable.”
- On Thursday, AI behemoth Nvidia said that it is collaborating with Uber to see “how foundation models trained on large-scale, real-world driving data can accelerate progress in autonomy.”
Uber stock (UBER) ticked up in premarket trading on Friday after Stifel raised its price target, according to TheFly.
The brokerage reportedly raised its price target to $124 from $116, which implies 31% upside from the ride-hailing firm’s Thursday closing price.
Why Did Stifel Raise UBER Price Target?
Stifel analysts reportedly said that some headlines intra-quarter related to autonomous cars pressuring the stock down a bit, but its third-quarter results “look reasonable.” The brokerage’s comments come amid heightened competition between Uber and its rivals over the deployment of autonomous vehicles, seen as key to future growth. Some analysts have warned that firms such as Waymo and Tesla, which are developing their own robotaxis, could race ahead with their own consumer-facing apps.
Guggenheim analysts noted earlier this month that the robotaxi adoption debate will remain a key driver of sentiment, with bulls highlighting the potential for market expansion and bears arguing for disintermediation risk, though both will prove accurate. The brokerage also stated that Uber’s re-accelerating Delivery business is relatively overlooked by investors and poised for sustainable double-digit growth.
NVIDIA Partnership To Be The Gamechanger?
On Thursday, AI behemoth Nvidia said that it is collaborating with Uber to see “how foundation models trained on large-scale, real-world driving data can accelerate progress in autonomy.”
“Using data from Uber’s diverse driving scenarios, spanning airport pickups, complex intersections, and variable weather, we post-trained NVIDIA Cosmos World Foundation Models to improve realism and safety,” the chipmaker said.
What Is Retail Thinking?
Retail sentiment on Stocktwits about Uber was in the ‘neutral’ territory at the time of writing.
“Maybe the NVDA news is what we need for this to close over $100 and keep going,” one trader wrote.
Uber stock has risen 52% this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<