Cantor Fitzgerald cuts Lyft stock target to $14 amid bookings miss

On Wednesday, Cantor Fitzgerald analyst Deepak Mathivanan adjusted the price target for Lyft shares, listed on (NASDAQ:LYFT), to $14 from the previous target of $15, while retaining a Neutral rating. The revision followed Lyft’s fourth-quarter earnings report, which revealed bookings slightly below the forecast by 1% according to data from Visible Alpha, though EBITDA exceeded expectations by 8%. According to InvestingPro data, Lyft’s revenue grew by 25.4% over the last twelve months, with the company currently appearing undervalued based on Fair Value analysis.

Lyft’s guidance for the first quarter of 2025 indicates rides growth in the mid-teens year-over-year, aligning with market expectations. However, the company’s projection for bookings growth stands at 10-14% year-over-year, which is 3 percentage points below the midpoint of market forecasts. This shortfall is attributed to recent declines in industry pricing trends that emerged towards the end of the fourth quarter. With analysts forecasting sales growth and profitability this year, subscribers to InvestingPro can access 8 additional key insights about Lyft’s financial outlook.

The company has been making consistent strides in enhancing its core rideshare services through key product initiatives. Despite this operational progress, Lyft faces challenges due to the recent shift in pricing dynamics, which introduces significant uncertainties to its short-term growth prospects.

Following the announcement, Lyft’s shares experienced an 11% decline in after-market trading, in contrast to Nasdaq futures which remained relatively stable. The analyst emphasized a cautious approach, recommending to remain on the sidelines until there is more clarity regarding the competitive landscape in the industry.

In other recent news, Lyft has been the subject of multiple analyst actions. JPMorgan has reduced its price target on Lyft to $16, citing an increasingly competitive rideshare landscape and the upcoming shift of the Delta partnership from Lyft to Uber (NYSE:UBER). The firm has also revised its estimates for Lyft’s future performance, decreasing its gross bookings forecasts and Adjusted EBITDA predictions.

Evercore ISI has also cut its price target for Lyft to $15, following mixed and lower-than-expected financial results for the fourth quarter. The firm maintains an ’In Line’ rating, indicating that it believes Lyft’s stock is currently valued appropriately in relation to its peers.

Goldman Sachs has maintained a Neutral rating and a $20.00 price target on Lyft, noting progress in operational and financial Key Performance Indicators despite modest Gross Bookings performance. Truist Securities has revised its price target for Lyft to $17, maintaining a Hold rating due to near-term pricing pressures.

Conversely, Canaccord Genuity has reaffirmed its Buy rating and $22.00 price target for Lyft, highlighting the company’s efforts to enhance user experience and financial resilience. These are recent developments, reflecting the varying perspectives of analysts on Lyft’s trajectory.

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