.July 22, 2024 10:13 AM

Melius analysts initiated coverage on Uber (NYSE:UBER) with a Hold rating and set a price target of $77 on the stock. They highlighted Uber’s position as a leader in the rideshare sector, offering a variety of services in mobility, delivery, and freight. The company has been expanding its mobility products to meet demand and scaling operations domestically and internationally.

Uber has focused on cross-selling between its mobility and delivery segments, with one-third of monthly consumers using multiple products. This strategy boosts penetration rates in mature markets and cuts customer acquisition costs by 50% in paid channels. Gross bookings are expected to grow at a CAGR in the mid to high teens over the next three years, in line with Street expectations of 16%. EBITDA is projected to grow annually at a rate of 30% to 40%, compared to the Street’s estimate of 39%.