Uber NYSE:UBER was flat in premarket as Jefferies reiterated a Buy rating and $110 price target, implying 48% upside from yesterday's close of $74.26. The firm said Q2 guidance implies continued 20%-plus bookings growth in constant currency alongside approximately 60 basis points of sequential improvement in incremental margin. U.S. Mobility is expected to accelerate on tailwinds from the FIFA World Cup, insurance cost relief, and newer ride modes.
Uber will report earnings on August 5. Jefferies said it will listen for updates on smaller autonomous vehicle partnerships that could address disintermediation concerns related to Alphabet NASDAQ:GOOGL Waymo and Tesla NASDAQ:TSLA. The firm also flagged potential commentary on Uber increasing its stake in Delivery Hero as a market risk, as additional capital committed to the German food delivery group could reduce cash available for share repurchases and constrain operational flexibility.
Jefferies will also monitor whether Mobility Bookings can sustain high-teens constant currency growth through Q4 2026 and whether Delivery can maintain growth momentum as comparisons toughen in the second half.