Following a 75% year-to-date surge in Uber (NYSE:UBER) stock, Barclays analysts raised their price target on the company’s shares to $57 from $45.
The analysts stated that even without considering the future possibilities of Travel Concierge AI, there is a foreseeable path for Uber’s shares to reach $70 based on a 15x valuation of $10 billion in EBITDA. While the achievement of the $10 billion EBITDA figure is expected by 2026, the analysts anticipate that the $70 share level could be reached sometime in 2025, given consistent growth and margin improvement.
The analysts also mentioned that there are positive catalysts that could drive Uber’s shares higher. An update on Uber’s long-term forecast by the management, expected early next year, could serve as a favorable catalyst. Furthermore, if Uber attains an investment grade status and implements a hike in its share repurchases, it has the potential to trigger a re-rating of its shares.