Uber Technologies Inc. (NYSE:UBER) is among the best debt-free stocks to buy now. Earlier last week, Morgan Stanley analyst Brian Nowak reaffirmed his conviction on Uber, reiterating his Buy rating and a $110 price target. The analyst believes the market is not valuing the company appropriately.
Nowak’s sum-of-the-parts analysis suggests the market is valuing Uber Technologies Inc.’s (NYSE:UBER) U.S. mobility business at a 2027 adjusted EBITDA multiple of 7x, which he believes is much lower given the business’s mid-teens growth. This also indicates a sharp discount relative to peers, which isn’t justified given the business’s strong fundamentals. He also highlighted the contrast in the 10% valuation discount relative to Lyft’s, which is relatively smaller, less diversified, and less profitable.
From an autonomous vehicle (AV) competition perspective, Nowak acknowledges that share prices for both Uber and Lyft might witness volatility as he expects an acceleration in AV development in 2026. However, he doesn’t expect any material financial impact on Uber for the next 24 months.
In another vote of confidence later in the week, BNP Paribas initiated coverage of Uber Technologies Inc. (NYSE:UBER) with an Outperform rating and a $108 price target. The firm characterized Uber as “a mobility and delivery winner,” despite the AV momentum ahead.
Uber Technologies Inc. (NYSE:UBER) is a global technology platform that connects consumers with transportation, delivery, and logistics services. The company operates through its Mobility, Delivery, and Freight segments, offering ride-hailing, meal delivery, and freight brokerage solutions.
While we acknowledge the potential of UBER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
