DA Davidson lowers Lyft stock price target to $14.20 on mixed results

Published 07/08/2025, 22:28
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Investing.com - DA Davidson has lowered its price target on Lyft (NASDAQ:LYFT) to $14.20 from $15.50 while maintaining a Neutral rating following the company’s second-quarter 2025 results. The stock, currently trading at $14.21, has shown impressive momentum with a 54% return over the past year, despite recent market pressure.

The research firm described Lyft’s quarterly performance as "mixed" and noted that the company’s third-quarter guidance includes two months of operations from the Freenow acquisition, which closed on July 31. InvestingPro data shows Lyft’s revenue growth at 20% year-over-year, with a gross profit margin of 35%.

DA Davidson’s 2025 revenue estimate for Lyft increased by less than 1%, reflecting the inclusion of Freenow partially offset by "slightly more conservative assumptions" for Lyft’s core domestic business.

The firm’s 2025 adjusted EBITDA estimate for Lyft has been revised upward from $527 million to $539 million.

The new price target of $14.20 represents a multiple of 7.2x 2025 EV/EBITDA, according to DA Davidson’s analysis.

In other recent news, Lyft reported its second-quarter earnings, revealing mixed results. The company’s gross bookings and revenue slightly missed Street expectations, but its EBITDA performance exceeded forecasts, with $129 million reported against an expected $124.7 million. Despite these mixed results, Lyft’s third-quarter guidance appeared strong, leading TD Cowen to raise its price target from $21 to $22 while maintaining a Buy rating. Similarly, Benchmark reiterated its Buy rating with a $20 price target, although they noted some uncertainty regarding the impact of the FREENOW acquisition on consensus estimates.

Cantor Fitzgerald maintained a Neutral rating with a $14 price target, acknowledging the company’s EBITDA outperformance despite bookings falling short. BMO Capital adjusted its price target from $15 to $16, highlighting Lyft’s adjusted EBITDA significantly outpacing expectations. BofA Securities also reiterated a Buy rating, maintaining a $12 price target, noting that active riders reached 26.1 million, slightly above projections. Overall, analysts have shown varied responses to Lyft’s recent performance, with some adjusting their price targets based on the company’s earnings and future outlook.

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