Uber faces potential 65% stock rise as profitability nears

Jefferies has initiated a buy rating for Uber, suggesting the company's shares could rise by as much as 65% in an upside scenario. Analysts at the firm indicated that profitability is “around the corner,” driven by the recovery of the mobility segment as vaccine rollouts facilitate reopening. Jefferies projects mobility bookings to reach $57 billion in fiscal year 2023, surpassing pre-pandemic levels.

Additionally, Uber's delivery business has served as a hedge during the pandemic, with delivery bookings growing 109% in fiscal year 2020. Analysts model the delivery segment to become profitable in the fourth quarter of 2021.

Separately, reports have surfaced regarding Uber's airport pricing mechanics. Users have noted significant fare discrepancies when selecting different airlines for drop-offs at the same terminal. These variations, which can result in substantial price differences for the same trip, appear to stem from how Uber codes specific airlines as unique locations within its dynamic pricing system.