Uber Technologies (UBER) is expanding into areas such as advertising, travel, and service partnerships, and autonomous vehicle technology, which offer long-term upside and help diversify the business beyond its original offerings, Tigress Financial Partners said in a note Friday.

The analysts said that Uber continues to benefit from strong demand in both its ride-hailing and delivery businesses. These core segments are driving significant economic profit and providing a solid foundation for growth. Artificial intelligence also plays a key role in Uber's operations. The company uses AI to personalize the user experience, optimize pricing, reduce wait times, and prevent fraud, they added.

The analysts said that looking ahead, Uber plans to increasingly leverage AV technology to improve operational efficiency, reduce driver-related costs, and scale its services. The company is also using its strong cash flow to invest in innovation, product development, strategic acquisitions, and minority investments, moves that are expected to drive long-term value and growth.

"Uber's ability to expand its service platform through low levels of capital investment will

continue to drive revenue growth and cash flow, leading to a rapidly increasing Return on Capital and further shareholder value creation," the analysts said.

Tigress Financial adjusted Uber Technologies' price target to $110 from $103 while keeping its buy rating.

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