Loop Capital upgraded its price target for Uber Technologies Inc. (NYSE:UBER) to $105 per share from the previous $89, reflecting improved earnings forecasts and increased investor confidence in Uber’s long-term prospects in the autonomous vehicle (AV) sector.

The research firm maintained its Buy rating, citing Uber’s steady growth in trip volumes and its asset-light, highly scalable business model as key drivers behind expected strong profit and free cash flow expansion.

A significant factor behind the higher target is the shift in market sentiment toward the role autonomous vehicles will play in Uber’s future. Loop Capital noted a more positive outlook on how robotaxis could reinforce Uber’s leadership in the rideshare market.

“Investor confidence is growing around the potential for AV technology to enhance Uber’s dominance in ride-hailing,” the analysts explained. They also emphasized that leading autonomous vehicle companies are increasingly partnering with Uber’s platform, which supports Uber’s position as a key player in the evolving AV ecosystem.

“We have long viewed Uber as the natural partner for technology innovators and fleet operators, given its vast existing demand base outside China,” the firm added.

In addition to rideshare growth, Loop Capital pointed to promising trends in Uber’s delivery business, which is expanding beyond traditional restaurant orders. The firm highlighted accelerating order values in non-restaurant categories and a rising contribution from Uber’s emerging advertising segment, both contributing positively to margins.

Uber stock price