Rosenblatt Initiates Uber Coverage With 'Buy' Rating and $100 Price Target

Rosenblatt has initiated coverage of Uber Technologies Inc. with a 'Buy' rating and a price target of $100, implying an upside of approximately 32% from current levels. The firm describes Uber as a "durably compounding platform," suggesting that the company's market position and operational scale create a sustainable cycle of growth. Analysts view recent stock weakness not as a red flag, but as an attractive entry point for investors to capitalize on an evolving business model.

The AI Engineering Pivot

While the market often focuses on consumer-facing apps, Uber is undergoing a radical transformation of its internal software development lifecycle. The company is aggressively integrating AI agents into engineering workflows to drive efficiency and reduce operational costs.

Confirmed data shows that over 70% of Uber's pull requests now involve AI agents. This shift is supported by a massive library of internal tools, with engineers developing more than 3,600 specialized agent skills to automate complex coding tasks. The adoption of these tools is scaling rapidly; weekly active users of Uber's AI offerings increased sevenfold between February and August.

Navigating the Autonomous Transition

This internal efficiency drive comes as Uber navigates the transition toward autonomous vehicles (AVs). Rather than building its own hardware, Uber is positioning itself as the primary orchestration layer for various AV providers.

To expand its robotaxi footprint, Uber has entered strategic partnerships globally. This includes a pilot program in Tokyo with Hinomaru Kotsu and a significant agreement with Pony AI to deploy more than 2,000 robotaxis across the Middle East and Europe. By integrating these fleets into its existing network, Uber aims to maintain dominance in the mobility sector regardless of which company manufactures the vehicle.

Market Implications

Rosenblatt's bullish outlook suggests that Uber's platform strength and operational efficiency outweigh the immediate risks posed by AV competition. The core thesis is that if Uber successfully transitions AVs from potential competitors into platform partners, it can justify a significantly higher valuation.

By combining a "compounding" core business in ride-hailing and delivery with a lean, AI-powered engineering organization, Uber is attempting to decouple growth from traditional headcount-heavy scaling. This operational leverage is a key driver behind the $100 price target.

What to Watch

Investors will monitor the execution of the Pony AI rollout and the results of the Tokyo pilot to see if robotaxi integration scales as predicted. Additionally, the company's ability to maintain the sevenfold growth rate in AI tool adoption will be a critical indicator of whether internal productivity gains are sustainable or merely an early-stage spike.