Investing.com– Wedbush added Uber Technologies Inc (NYSE:UBER) to its “best ideas list” given attractive risk/reward dynamics with shares trading at lower multiple.
Uber shares trading for only about 12.8 times of 2026 adjusted EBITDA estimate.
“We view the dislocation as unwarranted for a company demonstrating strong fundamentals,” analyst wrote highlighting Uber’s top-line growth in the mid-teens and projected adjusted EBITDA growth of over 30% year-over-year through 2026.
While concerns remain about the potential impact of autonomous vehicles on Uber’s core business, the brokerage expects minimal near-term effects due to limited AV availability and ongoing growth initiatives.
The near term impact to Uber is expected to be minimal given continued progress on growth initiatives, healthy performance in the core business, and the limited availability of AVs, Wedbush added.