Uber Technologies Inc (NYSE:UBER, ETR:UT8) has earned a price target boost to $115 from $97 from Bank of America analysts, who cited a series of positive developments spanning policy tailwinds, autonomous vehicle momentum, and accelerating bookings growth.
Shares of Uber traded hands at about $97 on Tuesday afternoon.
One tailwind for the ‘Buy’-rated company is the potential impact of the "No Tax on Tips" provision included in US President Donald Trump’s spending bill, known as the “big, beautiful bill," the analysts believe.
Bank of America estimates that this change could effectively raise Uber drivers' pay by 2.5%, by allowing gig workers, such as Uber and Lyft drivers, to deduct tips from taxable income even without itemizing.
With US Uber drivers expected to earn $42 billion in 2025 and approximately $5.7 billion of that coming from tips, the analysts estimate around $1 billion in tax savings.
“Tax benefit could provide modest tailwind to supply, indirectly supporting take rates,” they wrote.
The firm also pointed to news that Moove, a fleet manager backed by Uber, is reportedly raising $1.2 billion in financing to purchase and manage autonomous vehicles built by Waymo.
Moove currently partners with Waymo in Phoenix and Miami, and Bank of America sees expansion potential.
“Successful fundraising by Moove to purchase AVs could encourage other OEMs to invest to achieve Level 4 capabilities,” the analysts wrote, viewing this as consistent with a longer-term outlook of multiple autonomous vehicle suppliers operating across platforms.
Positive momentum
Additionally, the bank’s analysts highlighted data from Bloomberg Second Measure, which suggests positive second-quarter momentum for Uber’s core businesses.
Uber’s bookings growth outpaced first-quarter levels by roughly 140 basis points, with unadjusted mobility growth up 150 basis points and delivery growth up 90 basis points. Ride average transaction values also rose slightly to 8.4% year-over-year.
“Our take: overall positive growth data with stable Mobility pricing a positive for margins,” the analysts wrote.
Bank of America’s new price objective of $115 is based on a 24x multiple of projected 2026 free cash flow, up from 20x previously.
The analysts noted this still reflects a discount to FANG peers (referring to Facebook, Amazon, Netflix and Alphabet) trading at 32x, but said Uber warrants a premium due to its growing autonomous vehicle footprint, strong Uber One subscriber traction, and expanding partnerships.