Citi calls for bottoming out on Uber Technologies, Inc. (UBER.US): Expected to become the world's largest autonomous driving travel matching platform by 2029. 49% increase in stock price is beckoning.

Citibank research analyst Ronald Josie stated that as the deployment competition of self-driving cars as a reliable option for ride-hailing services continues to advance, Uber Technologies, Inc. (UBER.US) is expected to achieve its goal of becoming the world's largest self-driving mobility platform by 2029, leading its competitors with its expanding autonomous vehicle (AV) partnership network and scale advantage. Since announcing its fourth-quarter performance in early February this year, Uber Technologies, Inc. has announced seven new or expanded autonomous driving partnerships, including a recent partnership with Rivian (RIVN.US) involving the deployment of 10,000 fully autonomous Rivian R2Siasun Robot&Automation taxis, with an additional option for 40,000 more vehicles. Josie also pointed out that advancements in artificial intelligence (AI) technology will significantly shorten the deployment time and reduce costs for autonomous driving, especially with Uber Technologies, Inc.'s collaboration with NVIDIA Corporation (NVDA.US), which "should be able to drive the deployment of a complete driverless full-stack L4 level autonomous driving." He stated in the report, "We expect supply to accelerate over the next 1-3 years, and Uber Technologies, Inc.'s ride-hail platform will be a key driver for demand growth." Uber Technologies, Inc. recently announced a $100 million investment in building a fast charging network in Los Angeles, Dallas, and San Francisco, and established a "utilization guarantee agreement" with EVgo (EVGO.US) in New York, Boston, San Francisco, and Los Angeles. Uber Technologies, Inc. CEO Dara Khosrowshahi stated in a recent earnings conference call, "We are more convinced than ever that self-driving cars will unleash a multitrillion-dollar opportunity for Uber Technologies, Inc." Josie believes this is a goal that Uber Technologies, Inc. has the unique advantage to achieve. He stated, "As self-driving cars expand globally, we believe that with its scale advantage, Uber Technologies, Inc. is one of the companies most likely to benefit." Therefore, considering the stock price has dropped 10% this year due to continuing concerns about self-driving, Josie believes investors should take advantage of the current stock price dislocation. He stated, "We acknowledge concerns in the market about the long-term competitive landscape and pricing issues for self-driving. But we also believe that Uber Technologies, Inc.'s self-driving strategy can drive more autonomous vehicles into the market. As Uber Technologies, Inc. continues to increase market share, we believe this trend will continue and help the company cross the tipping point for self-driving scale." Josie reaffirmed a "buy" rating for Uber Technologies, Inc. and set a target price of $110, representing a 49% upside from last Friday's closing price.