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Investing.com - Bernstein raised its price target on Lyft (NASDAQ:LYFT) to $18.00 from $16.00 while maintaining a Market Perform rating. The stock, currently trading at $14.76, has shown strong momentum with a 19.6% return over the past year, according to InvestingPro data.
The research firm expressed a broadly constructive view on Lyft heading into its upcoming earnings report, expecting second-quarter results to align with guidance, likely toward the upper end of management’s projected range.
Bernstein forecasts 13% year-over-year gross bookings growth and $125 million in Adjusted EBITDA for the ride-sharing company, noting that the first quarter had general and administrative expense benefits that are not expected to continue.
The firm indicated that Lyft doesn’t need exceptional quarterly results to improve investor confidence, suggesting that "a straightforward print with modest upward bias to numbers is probably enough to start establishing a more consistent track record" which could help the company’s valuation multiple.
Bernstein also expects Lyft to provide additional information on its May Mobility partnership during the earnings report, though the firm has tempered expectations regarding the scale and scope of this initiative.
In other recent news, Lyft has been in the spotlight with several key developments. TD Cowen reiterated its Buy rating on Lyft, maintaining a $21 price target, and anticipates the company will report a 13.4% year-over-year revenue growth in the second quarter, with revenue expected to reach $1.63 billion. Meanwhile, BTIG maintained its Neutral rating, observing strengthening ride trends and projecting full-year bookings growth of 13%, exceeding Wall Street consensus. Oppenheimer raised its price target for Lyft to $20, citing diminished concerns about robotaxi competition as a positive for the company’s outlook. Conversely, Canaccord Genuity downgraded Lyft to Hold, reducing its price target to $14 due to uncertainties surrounding the autonomous vehicle market. Additionally, Lyft recently expanded its North American presence by launching its rideshare service in Puerto Rico, responding to strong demand from locals and tourists. These developments highlight the varied perspectives of analysts and the strategic moves Lyft is making in the evolving rideshare landscape.
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