BTIG maintains Lyft stock rating as ride trends strengthen

Investing.com - BTIG has reiterated its Neutral rating on Lyft (NASDAQ:LYFT) ahead of the company’s August 6 earnings release, citing strengthening ride trends observed in its tracking data. The company, currently valued at $6.2 billion, has demonstrated strong momentum with a 19.6% return over the past year and maintains a healthy balance sheet according to InvestingPro data.

The research firm noted that competitive concerns raised during Lyft’s fourth-quarter 2024 earnings call appear to have been overstated, with upbeat first-quarter results and tracking data pointing to potentially above-guidance second-quarter performance.

BTIG’s credit card receipt data shows Lyft rides growth accelerating to the highest rate observed since early 2024, with average fares declining year-over-year as expected and market share holding steady.

The firm has adjusted its second-quarter bookings forecast to the high end of Lyft’s guidance range, with EBITDA estimates above guidance, and now projects full-year bookings growth of 13%, exceeding Wall Street consensus.

While BTIG believes Lyft is well-positioned tactically heading into earnings, it maintains a longer-term preference for large-cap rideshare and delivery market leaders.

In other recent news, Lyft’s upcoming second-quarter earnings report is anticipated to show a 13.4% revenue growth year-over-year, with projected revenues reaching $1.63 billion, according to TD Cowen. The firm also forecasts an EBITDA of $126.4 million, representing a 23% increase from the previous year. Meanwhile, Lyft has expanded its operations by launching its rideshare service in Puerto Rico, marking another step in its North American growth strategy. In terms of analyst ratings, Oppenheimer has raised Lyft’s stock price target to $20, citing reduced concerns about competition from robotaxis. However, Canaccord Genuity downgraded Lyft from Buy to Hold, expressing concerns about the company’s future amid the rise of autonomous vehicle technology. Additionally, Lyft, along with Uber (NYSE:UBER), faces new regulations in New York City that increase minimum pay for drivers by 5%, a move that has drawn opposition from both companies. These developments illustrate the various challenges and opportunities Lyft is navigating in the current market landscape.

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