Bernstein reiterates Lyft stock rating at Market Perform with $16 target

Published 20/06/2025, 16:36
© Reuters.

Investing.com - Bernstein SocGen Group maintained its Market Perform rating and $16.00 price target on (NASDAQ:LYFT) following a visit to one of the company’s Flexdrive operations in Phoenix. The ride-hailing company, currently trading at $14.62 with a market capitalization of $6.15 billion, has demonstrated strong revenue growth of 27% in the last twelve months.

The research firm’s analysis focused on Flexdrive, an independent subsidiary that allows drivers to rent vehicles for use on the Lyft network. The program currently manages approximately 15,000 vehicles across 27 locations throughout North America.

According to Bernstein, Flexdrive handles vehicle acquisition and remarketing, utilizes proprietary software for operations management, and partners with national and local providers for maintenance and repairs. The firm noted that while "not a flashy business," Lyft believes its custom software provides a competitive advantage.

Bernstein highlighted insights about autonomous vehicle (AV) fleet management, describing it as "cumbersome" and potentially "more expensive in an AV world than we initially thought." The firm emphasized that fleet management requires scale in each market to be effective.

The research firm’s assessment concluded that despite operational challenges, fleet management remains "a necessary function" where Lyft and third-party providers can deliver value to autonomous vehicle companies.

In other recent news, Lyft has been the focus of multiple analyst reports and strategic developments. KeyBanc Capital Markets maintained its Sector Weight rating on Lyft, highlighting the company’s progress toward its 2027 financial targets, despite a shortfall in gross bookings growth projections. Meanwhile, DoubleVerify (NYSE:DV) Holdings announced a partnership with Lyft to enhance media verification capabilities on Lyft’s advertising platform, raising its own second-quarter revenue guidance to $180 to $184 million. RBC Capital reiterated its Outperform rating on Lyft, noting the company’s minimal exposure to tariffs and generative AI concerns, while also mentioning Lyft’s upcoming autonomous vehicle launch in Atlanta.

Tigress Financial Partners raised its price target for Lyft to $28, maintaining a Buy rating, citing Lyft’s technology advancements and market expansion efforts. Morgan Stanley (NYSE:MS) also lifted its price target to $19, following Lyft’s first-quarter results that exceeded expectations, with a significant EBITDA beat and increased profitability. The investment firm emphasized the need for consistent performance, particularly in comparison to competitors like Uber (NYSE:UBER). Lyft’s strategic initiatives, including a $750 million share repurchase authorization, continue to draw attention from analysts and investors alike. These developments reflect Lyft’s ongoing efforts to strengthen its market position and enhance shareholder value.

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