Uber Technologies Inc (NYSE:UBER, XETRA:UT8) has earned a repeat ‘Buy’ rating from Jefferies analysts who believe that the recent pullback tied to renewed autonomous vehicle (AV) concerns has created an attractive entry point.
Uber shares have fallen about 17% since late September, leaving the valuation near last year’s lows despite what the analysts see as limited near-term competitive impact from AVs.
Jefferies wrote that the selloff echoes late 2024, when similar fears preceded a sharp rally. They added that the multiple has returned to levels that previously paved the way for an approximately 70% rally through much of 2025.
The analysts contend that AV adoption will have “nearly zero impact on growth through 2027,” as Uber’s expansion increasingly depends on markets outside San Francisco, where autonomous testing has been concentrated.
They estimate that even with Waymo’s rapid progress, the impact on Uber’s bookings growth will be negligible relative to overall demand growth.
Waymo reported about 450,000 paid rides per week in December and is targeting one million weekly rides by the end of 2026. Even at that scale, Jefferies estimates Waymo would account for roughly 1.2% of US rideshare volume, translating into headwinds of just 0.07% and 0.11% to Uber’s bookings growth in 2026 and 2027, respectively. “Which pales in comparison to overall growth in the high-teens,” the analysts wrote.
Investor attention has also shifted toward Tesla’s autonomous ambitions, which some view as a greater long-term threat due to its manufacturing capacity.
However, Jefferies argues that economics remain a constraint. “Our analysis shows that even after reaching scale in 5+ years, a standalone AV fleet would still have costs per trip that are slightly above rideshare,” the analysts wrote, citing lower utilization and the need to build capacity for peak demand.
Against that backdrop, Jefferies sees Uber as well-positioned to benefit rather than be displaced by AVs. “Over the past two years, UBER has grown its stable of AV partnerships to over 20, creating an ecosystem that reduces reliance on any single provider,” the analysts wrote.
They added that Uber’s large user base and fleet management expertise should help it integrate autonomous supply while maintaining an asset-light model.
Jefferies maintained a $120 price target on Uber, implying roughly 40% upside from current levels, and said it expects durable mobility growth and continued progress on AV partnerships to drive the shares higher despite near-term headline risk.
Shares of Uber traded hands at $86 on Wednesday afternoon, down 11% in the last six months.