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On Wednesday, Goldman Sachs analyst Eric Sheridan maintained a Neutral rating and a $20.00 price target on Lyft (NASDAQ:LYFT), which currently trades at $14.39. According to InvestingPro data, analyst targets range from $14 to $26, with the stock showing significant volatility in recent months. Sheridan’s assessment followed Lyft’s Q4 2024 earnings report, where the company highlighted several key points. Lyft’s Gross Bookings (GBs) for Q4 2024 were at the lower end of the guidance range, and the high-end guidance for Q1 2025 GBs fell short of market expectations due to headwinds from reduced prices in the US market.
Despite the modest Gross Bookings performance, Lyft demonstrated progress in operational and financial Key Performance Indicators (KPIs), with InvestingPro showing impressive revenue growth of 25.4% over the last twelve months. The company’s overall Financial Health Score is rated as "GOOD," which Sheridan noted as indicative of an improving marketplace balance. This progress supports management’s confidence in the long-term fundamentals of the business, though InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.
Lyft reported an Adjusted EBITDA that exceeded the guided range and provided guidance for Q1 2025 Adjusted EBITDA that encompassed Street estimates, even in light of the lower GBs. Sheridan expects investor attention to shift towards Lyft’s commentary on pricing, particularly how the headwinds mentioned by the company may affect the estimate trajectory beyond Q1 and the potential implications for competitive dynamics in the US ridesharing market as 2025 progresses.
Goldman Sachs’ reiteration of the Neutral rating and the decision to maintain the 12-month price target at $20 comes after updating operating estimates based on Lyft’s recent earnings report and management’s forward-looking statements. The firm anticipates that the discussion around pricing will become a focal point for investors seeking to understand the future landscape of the ridesharing industry. For deeper insights into Lyft’s valuation and competitive position, InvestingPro subscribers can access comprehensive research reports and additional ProTips that analyze the company’s market position and growth potential in detail.
In other recent news, Lyft, the ride-hailing company, has been the subject of various analyst reviews following its fourth-quarter 2024 results and first-quarter 2025 guidance. Truist Securities has downgraded Lyft’s stock price target from $20 to $17 while maintaining a Hold rating, citing concerns over near-term pricing pressures despite signs of robust demand. On the other hand, Canaccord Genuity has maintained its Buy rating and a $22 price target for Lyft, highlighting the company’s financial resilience and the success of its Price Lock feature.
RBC Capital Markets has expressed a cautious outlook towards Lyft, focusing on the balance between growth initiatives and market challenges. Meanwhile, BofA Securities has raised its price target for Lyft from $19 to $21, reflecting confidence in the company’s strategic partnerships in the autonomous vehicle sector.
In an exciting development, Lyft plans to introduce autonomous robotaxis in Dallas by 2026, a move that underscores the company’s commitment to innovation in the transportation sector. This initiative, made possible through Lyft’s partnership with Mobileye, is part of the company’s broader strategy to integrate autonomous vehicles into its service offerings. These recent developments highlight the dynamic and evolving landscape of the ride-sharing industry.
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