Oppenheimer Analysts Identify Uber Technologies as Top Pick for 2025

Investing.com — Oppenheimer analysts have identified Uber Technologies, Inc. (NYSE: UBER) as a leading large-cap pick for 2025, highlighting the present market conditions as a favorable buying opportunity.

Market Performance

Despite a 23% drop in Uber's share price since the recent earnings report—contrasting with the NASDAQ's 4% gain—the firm continues to hold an "Outperform" rating with a price target of $85.

Concerns regarding robotaxis and the growth of rides in the U.S. have negatively impacted Uber's stock; however, Oppenheimer considers these worries to be exaggerated.

> “US ride growth concerns and Robotaxi have created an attractive buying opportunity,” the firm stated.

Strong Fundamentals

Oppenheimer underscores Uber's robust fundamentals, forecasting a 17% revenue growth and a 30% EBITDA compound annual growth rate (CAGR) from 2024 to 2026. The firm sees Uber poised for gains both in the near term and long term.

Oppenheimer also predicts that UBER will regain lost U.S. mobility market share due to higher insurance cost adjustments occurring one quarter earlier than LYFT, combined with more aggressive incentives.

Future Outlook

Looking ahead, the analysts believe that in a landscape with multiple robotaxi providers, Uber's dominant logistics platform will enable it to thrive, providing higher utilization and a lower cost-to-serve model.

While the potential of robotaxis has attracted investor interest, Oppenheimer notes several challenges, including high upfront fleet costs ranging from $15 billion to $40 billion, maintenance-related vehicle downtime, and the need for infrastructure expansion.

> “We highlight 15 questions/challenges related to Robotaxi,” the analysts noted, casting doubt on optimistic cost expectations.

Nevertheless, they argue that robotaxis could significantly expand Uber's total addressable market (TAM) by enabling deeper penetration into consumer car expenses, which currently account for only 2% of Uber's U.S. mobility revenues.

> “Even if the ~20% take-rate fell to 10%, the business would be >2x larger, and compares to 13%-15% for online travel,” Oppenheimer emphasized.

Oppenheimer's price target of $85 indicates a valuation of 16x FY26 EBITDA, suggesting substantial upside potential from current valuations.