Canaccord Genuity raises Lyft stock price target to $18 on Waymo partnership

Investing.com - Canaccord Genuity raised its price target on Lyft (NASDAQ:LYFT) to $18.00 from $11.00 on Thursday, while maintaining a Hold rating on the ride-sharing company’s stock. The stock has shown remarkable momentum, surging nearly 98% over the past six months and currently trading at $22.84, near its 52-week high of $23.50.

The significant price target increase represents a 64% upside from the firm’s previous valuation, reflecting what Canaccord describes as "recent positive developments" at the company.

The research firm specifically highlighted Lyft’s "freshly minted partnership with Waymo" as a key factor in its decision to revise the price target upward.

Canaccord expanded its price-to-earnings multiple on Lyft to 13x from 8x, based on its 2027 adjusted earnings per share estimate of $1.40.

Despite the more optimistic price target, the firm maintained its cautious Hold rating, noting that the shares "are currently fully priced and may not reflect the disruptive nature of the robotaxi transition."

In other recent news, Lyft has announced a partnership with Waymo to provide autonomous vehicle services in Nashville starting in 2026. This collaboration will see Waymo owning the fleet while Lyft manages the vehicles. The announcement has prompted several analyst firms to adjust their price targets for Lyft. Jefferies raised its price target to $22, maintaining a Hold rating, while BofA Securities increased its target to $14 with an Underperform rating. BMO Capital also adjusted its target to $20, keeping a Market Perform rating, noting this as Lyft’s third major autonomous vehicle deal in the past ten months. Additionally, Bernstein SocGen Group reiterated its Market Perform rating with a price target of $16, highlighting the partnership as a significant development in Lyft’s autonomous vehicle strategy. In other company news, Lyft is testing a new feature that allows drivers to see potential riders’ tipping habits and punctuality before accepting a ride. This initiative aims to provide drivers with more information to enhance their experience.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.