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Investing.com - Guggenheim initiated coverage on Lyft (NASDAQ:LYFT) Wednesday with a Buy rating and a $22.00 price target, citing the rideshare company’s autonomous vehicle partnerships and growth potential. The stock has shown strong momentum, delivering an impressive 85% return over the past six months, while maintaining profitability over the last twelve months according to InvestingPro data.
The investment firm highlighted Lyft’s recent partnerships with autonomous vehicle companies Waymo and May Mobility as key factors in its positive outlook, referring to these initiatives as the company’s "Ticket to Ride" strategy.
Guggenheim believes market consensus underestimates the contribution from Lyft’s FREENOW acquisition and notes that Street booking forecasts currently fall below management’s medium-term targets.
The firm projects autonomous vehicles will represent approximately 20% of the overall U.S. rideshare market by 2035, with international markets following on a 5-10 year delay. While Guggenheim views Uber as better positioned for increased autonomous vehicle adoption, it believes Lyft’s recent partnerships strengthen the case that multiple platforms will participate in the ecosystem.
Guggenheim’s $22 price target represents 17x its 2027 estimated EV/OIBDA (including stock-based compensation and one-time items), reflecting a 29% premium to the S&P 500 but a 29% discount to the firm’s Uber target.
In other recent news, Lyft has seen a series of analyst revisions and strategic developments. Piper Sandler raised its price target for Lyft to $28, maintaining an Overweight rating, following the announcement of a partnership with Google’s Waymo. This partnership aims to manage a full fleet of autonomous vehicles in Nashville by 2026. Meanwhile, Canaccord Genuity also increased its price target to $18, citing recent positive developments, while maintaining a Hold rating. TD Cowen raised its price target to $30, attributing the change to positive California insurance reforms and maintaining a Buy rating. Mizuho initiated coverage on Lyft with a Neutral rating and a $24 target, noting the company’s balanced risk-reward profile due to cost reductions and ride growth. KeyBanc maintained its Sector Weight rating, highlighting Lyft’s improved execution and market share gains. These recent developments reflect a range of analyst perspectives on Lyft’s future potential and strategic moves.
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