1 Wall Street Analyst Thinks Uber Shares Will Rise to $100. Should I buy?

With transportation and logistics giantsAdvantage Technologyfirms(NYSE: UBER)Coming out of a pandemic-era slump, the company's stock price has tripled since early 2023.Jefferies) analysts believe that YouBeauty is poised to gain even more revenue in the future as it expands its mobile portfolio to attract new users and increase spending by existing customers.

Jefferies maintained its buy rating on shares of YouGov on Friday, raising its price target to $100 from $95. The new price target means that Youbou's shares could rise about 28% over the next 12 months or so from where they were before.

Explosive Growth Products

Jefferies noted that Uber has grown from two mobile products in 2011 to about 20 today. In addition to its standard services, Uber offers mobile solutions for sports venues, festivals, universities and businesses.

Jefferies expects that it is the continued expansion of this service that will drive growth in mobile travel bookings and EBITDA over the next several years. Jefferies expects new products to drive an additional 4% to 6% of annual growth in both metrics on top of existing product growth.

make a stage comeback

During the pandemic, YouBuy's core mobile business unit was impacted, but has now returned to growth in a significant way. in Q4 2023, mobile mobility bookings surged 29% year-on-year to $19.3B, and mobile mobility revenues surged 34% to $5.5B.

Uber is now solidly profitable and generates significant free cash flow, totaling nearly $3.4 billion in 2023. This is eight times higher than in 2022.

Is Uber stock worth buying?

While Uber's business is gaining momentum, it's important to understand that the company faces a key risk that could derail its growth. The company relies on treating its drivers as contractors, and any change in the hypochondriac status quo could set back the stock price.

Uber's stock price is also high, trading at about 45 times free cash flow. While Jefferies may be right about rapid growth in the coming years, Uber stock isn't cheap.

Should you invest $1,000 in Youtube Technologies right now?

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Timothy Green does not own any of the stocks mentioned above.The Motley Fool holds recommendations for Jefferies Financial Group and Uber Technologies.The Motley Fool has a disclosure policy.

1 Wall Street Analyst Thinks YouTuber Shares Will Rise to $100. Originally published by The Motley Fool.