Uber Technologies' (UBER) competitive advantages in autonomous vehicles should help reduce risks embedded in its stock price, RBC Capital Markets said Friday in a report following investor meetings with company executives.
Uber expects to launch autonomous-vehicle operations in 10 new markets by the end of 2026 through partnerships with various providers, suggesting that first-mover technology advantages may be fading, RBC said.
The company also plans to purchase vehicles to generate real-world utilization data that would help financial institutions recognize autonomous vehicles as a viable asset class with attractive yields, the report said.
Uber highlighted its existing banking ties for financing human-driven fleets, noting that its scale can assure lenders of steady demand, RBC said.
The company aims to sustain consistent mid- to high-teens growth in the foreseeable future with margin leverage, though it expects investment spending to rise in 2026, the report said.
RBC maintained its outperform rating on Uber stock with a price target of $110.
Price: 84.84, Change: -0.60, Percent Change: -0.70
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