Uber Technologies (UBER) posted "strong" Q1 results with the ride-hailing company finding areas to drive incremental demand and frequency growth, RBC Capital Markets said in a note emailed Thursday.

The company reported Wednesday it swung to a Q1 profit of $0.83 per diluted share from a loss of $0.32 a year earlier, which beat the $0.51 consensus of analysts polled by FactSet.

Revenue for the quarter ended March 31 rose to $11.53 billion from $10.13 billion a year earlier, but fell short of expectations for $11.63 billion.

According to RBC Capital, the company's bookings continue to hold up with no macro impact being seen.

RBC analysts added that insurance inflation was abating "better-than-expected," giving Uber room to pass a lower amount on to customers. The company was also seeing an easier time acquiring drivers due to current the labor environment, RBC Capital said.

Meanwhile, autonomous vehicle catalysts via Waymo should remain "largely positive" as more vehicles roll out through the year, with Tesla remaining the "primary unknown/dislocation risk," RBC Capital said.

The firm reiterated its outperform rating on the stock and raised its price target by $12 to $94.

Price: 83.14, Change: -0.51, Percent Change: -0.61