Cantor Fitzgerald maintains Lyft stock rating despite mixed Q2 results

Published 07/08/2025, 16:02
© Reuters.

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $14.00 price target on Lyft (NASDAQ:LYFT) following the rideshare company’s second-quarter earnings report. According to InvestingPro data, Lyft currently trades at $14.42, with analysis suggesting the stock is undervalued based on its Fair Value model.

The company reported second-quarter bookings slightly below previous Street estimates, though its EBITDA performance exceeded expectations, according to Cantor Fitzgerald analyst Deepak Mathivanan. The company’s revenue grew by 19.94% over the last twelve months, reaching $6.11 billion, with an EBITDA of $85.22 million.

Lyft’s third-quarter guidance suggests a slight deceleration in bookings growth at the midpoint when accounting for an estimated $150-200 million contribution from its Freenow acquisition, which Cantor Fitzgerald noted was "better than feared."

The research firm highlighted Lyft’s "good progress" on key growth initiatives, including rewards programs and price lock features, though indicated that debates about the company’s competitive position in the autonomous vehicle market are likely to continue.

Cantor Fitzgerald has adjusted its financial projections for Lyft, raising its FY26 bookings estimate by 5% to account for the Freenow acquisition, while also increasing its EBITDA forecast by 3%. Analysts tracked by InvestingPro expect the company to remain profitable this year, with EPS forecasts for FY2025 at $1.16.

In other recent news, Lyft reported its second-quarter 2025 earnings, revealing a significant shortfall in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.10, which was 61.54% below the forecasted $0.26. Revenue also fell short, coming in at $1.59 billion against an expected $1.61 billion. Despite these setbacks, Lyft’s second-quarter results showed record active riders, with 26.1 million surpassing analyst projections of 25.9 million. The company’s EBITDA was $129 million, aligning with Street expectations and exceeding some forecasts. Analyst firms have reacted to these results by adjusting their price targets; TD Cowen raised its target to $22 while maintaining a Buy rating, and BMO Capital adjusted its target to $16 with a Market Perform rating. Evercore ISI maintained its price target at $15, reiterating an "In Line" rating. Lyft’s partnership with United Airlines also continues to garner positive attention, with BofA Securities maintaining a Buy rating and a $12 price target.

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