Morgan Stanley analyst Brian Nowak reiterated an Overweight rating on Uber Technologies, Inc (UBER  ) with a price target of $90.

Nowak flagged that UBER's growth-adjusted multiple is now lower than Lyft, Inc (LYFT  ) and Maplebear Inc (CART  ), which creates an attractive entry point.

He highlighted that this pullback has come as investors need more confidence in upward revisions. At the same time, fears around Robotaxi and autonomous driving disruption have re-emerged following the release of Tesla Inc's (TSLA  ) new autonomous capabilities and the announcement of its Robotaxi event on August 8.

Nowak noted that the Morgan Stanley Alphawise Survey shows ample growth runway, and Uber's multi-product rides and cross-platform strategies are set to drive adoption, frequency, and profitable growth. He also detailed Uber Eats' suburb opportunity and the LATAM rides opportunity, given DiDi Global Inc's (DIDIY  ) potential pullback in investment.

Nowak noted a 30% upside to his $90 Uber price target, which implies paying 22X fiscal 2025 EBITDA or a ~4% fiscal 2025 free cash flow (FCF) yield.

On an FCF to growth basis, Nowak's price target implies a 0.8 FCF to growth multiple, in line with DoorDash, Inc (DASH  ) and a ~10-20% premium to LYFT and CART is justified, given UBER's leading scale, market position, and ability to drive growth and FCF.

On LYFT, Nowak noted reasonable forward growth and profitability, with a slightly negative tactical skew (in particular, vs. UBER). He noted reasonable forward growth and profitability on CART but with a somewhat positive skew.

Uber Technologies stock gained over 85% in the last 12 months. Investors can gain exposure to the stock via First Trust US Equity Opportunities ETF (FPX  ) and Global X Millennial Consumer ETF (MILN  ).

Price Action: UBER shares traded higher by 3.22% at $71.46 at the last check Monday.