Analysts at Jefferies raised their price target on Uber Technologies (NYSE:) from $95 to $100 on Friday, marking a new Street high.
The investment bank said UBER has significantly expanded its mobility offering, expanding its product portfolio from just two options in 2011 (UberX and Uber Black) to around 20 currently.
This diversification across various use cases not only allows Uber to attract new customers but also drives greater usage through more product adoption. Additionally, by offering alternatives for a wider range of driving occasions, Uber has actually expanded its Total Addressable Market (TAM), according to Jefferies’ assessment.
“The strategy is working, with bookings from new mobility products (or new bets) increasing from $2.3 billion in FY21 to $8.5 billion in FY23, representing annual growth of 90% and now comprises 12% of mobility bookings (6% in ’21),” the analysts noted.
“Key new offerings include Reserve, Taxi, 2/3 Wheelers and XShare, each generating over $1 billion in bookings (ARR),” they highlighted.
The ride-hailing giant’s new product introductions are expected to boost its annual Mobility Bookings and EBITDA growth rate by 4% and 6%, respectively, through 2026, “supporting faster growth and estimates upward,” analysts said.