Uber Technologies' (UBER) acquisition of Delivery Hero could create more value than management's initial projections, with several revenue and cost opportunities not reflected in the company's estimated $1.2 billion in annual run-rate synergies, RBC Capital said in a note emailed Friday.

The analyst said the deal expands Uber's delivery presence to 99 markets and offers upside through greater cross-platform use of its mobility and delivery services, with management's synergy estimates remaining conservative.

RBC said the acquisition could drive additional growth through advertising, quick commerce, marketplace optimization and merchant-funded offers.

Uber is expected to shift its capital allocation toward share repurchases after completing the acquisition, the report added.

RBC maintained its outperform rating on the stock and its price target of $105.

Uber Technologies shares were down 2.4% in Friday trading.

Price: 72.35, Change: -1.69, Percent Change: -2.28