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Investing.com - Benchmark maintained its Buy rating and $26.00 price target on Lyft (NASDAQ:LYFT), currently trading at $20.36, ahead of the ride-sharing company’s third-quarter earnings report scheduled for Wednesday, November 5. According to InvestingPro data, the stock has delivered an impressive 51.4% return year-to-date, with analysis suggesting the stock is currently undervalued.
The research firm noted that Lyft shares recently reached new 52-week highs following the company’s Waymo partnership announcement, which Benchmark described as having "a decidedly different feel" from Uber’s Waymo partnerships, particularly regarding profitability and margin contribution. InvestingPro data shows Lyft has achieved profitability over the last twelve months, with revenue growing at a robust 19.9% rate.
Benchmark expressed some concerns heading into the earnings report, including the possibility that Uber could see reacceleration in its UCAN segment, potentially creating a "modest narrative headwind" for Lyft, though direct comparisons would be difficult due to disclosure differences.
The firm also highlighted that consensus estimates may need adjustment, suggesting that gross bookings forecasts appear too low while revenue projections seem too high through 2027, though EBITDA estimates are "in a good place and beatable."
Benchmark pointed to Lyft’s recent Tensor partnership and a small acquisition as likely focal points for the upcoming earnings call, maintaining that Lyft shares "look cheap on the out years" with a medium-term target of $30 possible if the company "can keep executing."
In other recent news, Lyft has been the focus of several analyst updates and projections. TD Cowen has maintained its Buy rating on Lyft, setting a price target of $30, citing solid growth and projecting a 10.7% year-over-year revenue increase for the third quarter of 2025, with expected total revenue of $1.69 billion. Bernstein analyst Nikhil Devnani raised Lyft’s price target to $22, highlighting potential free cash flow upside and favorable insurance dynamics, although cautioning that these benefits might diminish over time. Guggenheim initiated coverage on Lyft with a Buy rating and a $22 price target, emphasizing the company’s autonomous vehicle partnerships with Waymo and May Mobility as significant growth drivers. Mizuho also began coverage with a Neutral rating and a $24 price target, noting Lyft’s effective cost reductions and mid-teens ride growth. Additionally, TD Cowen recently increased its price target to $30, attributing this to positive California insurance reforms, which could enhance Lyft’s long-term prospects. These developments reflect a range of perspectives on Lyft’s potential, driven by its strategic initiatives and market conditions.
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