Breakingviews - DoorDash’s Deliveroo swoop is pricey but timely

Written by Emily J. Thompson, Senior Investment Analyst

UBER-0.3%

DASH-0.2%

AMZN+2.06%

Source: Reuters

Updated: Apr 28 2025

0mins

Source: Reuters

DoorDash's Acquisition Proposal: DoorDash CEO Tony Xu has proposed to acquire Deliveroo for $3 billion, aiming to capitalize on the current consolidation in the European food delivery market, despite the deal requiring optimism due to its all-cash nature.
Market Context and Financial Implications: The acquisition comes at a time when Deliveroo's valuation is significantly lower than its IPO price, and while DoorDash could benefit from cutting costs, analysts suggest that achieving a solid return on investment may be challenging given the competitive landscape.

UBER

$82.31+Infinity%1D

Analyst Views on UBER

Wall Street analysts forecast UBER stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UBER is 114.67 USD with a low forecast of 73.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

31 Analyst Rating

27 Buy

3 Hold

1 Sell

Strong Buy

Current: 82.560

Low

73.00

Averages

114.67

High

150.00

Current: 82.560

Low

73.00

Averages

114.67

High

150.00

KeyBanc

Overweight

downgrade

$110 -> $105

2026-01-20

New

Reason

KeyBanc

Price Target

$110 -> $105

AI Analysis

2026-01-20

New

downgrade

Overweight

Reason

KeyBanc lowered the firm's price target on Uber to $105 from $110 and keeps an Overweight rating on the shares. The firm's latest Mobility and Delivery Survey highlighted improving adoption rates across ridesharing, food delivery, and grocery delivery, causing us to raise 2026E EBITDA across the group. Uber maintains robust rideshare adoption and preference, KeyBanc says. Net, it views this as a favorable backdrop across its coverage universe but is adjusting its price target to reflect broader conservatism.

Cantor Fitzgerald

Overweight

downgrade

$108 -> $99

2026-01-08

Reason

Cantor Fitzgerald

Price Target

$108 -> $99

2026-01-08

downgrade

Overweight

Reason

Cantor Fitzgerald lowered the firm's price target on Uber to $99 from $108 and keeps an Overweight rating on the shares. Despite lingering macro concerns, the outlook for Global Internet stocks into 2026 is increasingly positive as AI enters a "Synergy" phase that should drive accelerating revenue growth, improved value capture, and clearer long-term returns on capex, the analyst tells investors in a research note. With valuations still about 20% below medium-term ranges despite 2025 outperformance, the group is positioned to outperform in 2026 amid positive estimate revisions and improving sentiment, Cantor says.

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Jefferies

John Colantuoni

Buy

maintain

$120

2026-01-07

Reason

Jefferies

John Colantuoni

Price Target

$120

2026-01-07

maintain

Buy

Reason

Jefferies analyst John Colantuoni notes escalating autonomous vehicle concerns drove Uber shares down about 17% since late September and pushed the multiple back to last year's low, when the firm points out that similar concerns paved the way for a roughly 70% rally through the first nine months of 2025. The analyst, whose work shows AVs will have "nearly zero impact on growth thru 2027" as expansion relies increasingly on markets outside San Francisco and expects durable Mobility growth and further progress on Uber's other AV partnerships, recommends buying shares and maintains a Buy rating and $120 price target on Uber.

Wolfe Research

Outperform

NULL

downgrade

$125 -> $110

2026-01-05

Reason

Wolfe Research

Price Target

$125 -> $110

2026-01-05

downgrade

Outperform

NULL

Reason

Wolfe Research lowered the firm's price target on Uber to $110 from $125 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.

About UBER

Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.