Evercore ISI cuts Lyft stock price target to $15 from $19

On Wednesday, Evercore ISI made an adjustment to its price target for Lyft stock (NASDAQ:LYFT), reducing it to $15.00 from the previous $19.00, while keeping the rating at ’In Line’. The revision follows Lyft’s mixed and lower-than-expected financial results for the fourth quarter. According to InvestingPro data, Lyft’s stock currently trades at $14.39, with a notable 48.2% gain over the past six months despite recent volatility.

The firm’s analysts pointed out that the central issue for Lyft is whether it can maintain revenue growth while also increasing profitability. While InvestingPro data shows impressive revenue growth of 25.4% in the last twelve months, the company still faces profitability challenges. Despite recognizing Lyft’s valuation as reasonable, the analysts expressed a need to observe sustained positive fundamental trends before adopting a more constructive stance on the shares.

Evercore ISI’s commentary highlighted Lyft’s quarterly performance, which did not fully meet expectations, prompting the reassessment of the stock’s future outlook. The analysts emphasized the importance of consistent improvement in the company’s fundamentals, indicating that this would be a key factor in any future rating changes. InvestingPro analysis indicates that Lyft maintains a "GOOD" overall Financial Health score, suggesting potential for improvement.

The maintenance of the ’In Line’ rating suggests that Evercore ISI believes Lyft’s stock is currently valued appropriately in relation to its peers, and the firm does not foresee significant stock movement in either direction in the near term.

Lyft, a major player in the ride-sharing industry, has been under scrutiny as investors and analysts alike assess its ability to balance growth with profitability, a common challenge in the tech and gig economy sectors.

The new price target of $15 represents Evercore ISI’s adjusted expectation for Lyft’s stock value, taking into account the company’s recent performance and the analysts’ criteria for sustained positive trends in the company’s business operations.

In other recent news, Lyft has been the focus of several analyst reports following the release of its Q4 2024 earnings. Goldman Sachs maintained a neutral rating on Lyft with a $20 target, citing Lyft’s gross bookings for Q4 2024 at the lower end of the guidance range and high-end guidance for Q1 2025 falling short of market expectations. Despite this, Lyft showed progress in operational and financial Key Performance Indicators, supporting management’s confidence in the business’s long-term fundamentals.

Truist Securities revised its price target for Lyft shares from $20.00 to $17.00, maintaining a Hold rating. This adjustment follows Lyft’s mixed Q4 2024 results and Q1 2025 guidance. Despite Lyft’s efforts to enhance customer experience and accelerate product innovation, Truist Securities remains cautious due to near-term pricing pressures.

Canaccord Genuity reaffirmed its Buy rating and $22.00 price target for Lyft shares. Lyft’s Q4 performance showcased a mix of achievements and challenges, with gross bookings falling short of Canaccord’s expectations, but revenue aligning and adjusted EBITDA surpassing their estimates. Despite pricing pressure within the industry, Lyft remains committed to achieving its long-term goals.

RBC Capital Markets slightly lowered its estimates for Upwork (NASDAQ:UPWK), citing more conservative assumptions about the Gross Services Volume in 2025. This adjustment reflects a more tempered outlook for the company’s growth trajectory.

Lastly, BofA Securities raised the price target on Lyft’s shares to $21.00, up from the previous target of $19.00, maintaining a Buy rating. This comes in the wake of Lyft’s recent partnership with Mobileye, a developer of autonomous vehicle technology, and the addition of Marubeni Corporation as a new collaborator.

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