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KeyBanc Capital Markets maintained its Sector Weight rating on Lyft (NASDAQ:LYFT) Wednesday, noting the ride-sharing company is tracking well against most of its 2027 financial targets. The investment firm highlighted that Lyft is ahead in several areas including capital allocation and free cash flow conversion, while performing at least in line with expectations in other segments such as Lyft Media and margins. Recent data from InvestingPro shows Lyft’s strong performance, with revenue growing 27.32% in the last twelve months and a market capitalization of $6.29 billion.
The research note pointed out that gross bookings growth remains the one area where Lyft may fall short of its approximately 15% target, with current Wall Street projections modeling a 12% compound annual growth rate from 2024 to 2027. KeyBanc suggested this gap could potentially be closed through a combination of product initiatives, autonomous vehicle partnerships, and scaling of the FREENOW service. InvestingPro data reveals that 5 analysts have recently revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s trajectory.
KeyBanc expressed encouragement about Lyft’s overall progress since its investor day held just over a year ago. The firm indicated it would consider a more positive stance on the stock as it observes improvements in ride volume gains.
The investment bank’s analysis comes as Lyft continues to compete with larger rival Uber (NYSE:UBER) in the ride-sharing market while working to diversify its revenue streams. Lyft outlined its long-term financial objectives during its 2023 investor day, setting targets that extend through 2027.
Despite maintaining its neutral Sector Weight rating, KeyBanc’s assessment suggests Lyft is making meaningful progress on its strategic initiatives and financial goals. The firm did not provide a specific price target for Lyft shares in its latest research note. According to InvestingPro analysis, Lyft appears undervalued based on its Fair Value calculation, with 12 additional exclusive ProTips available to subscribers. For deeper insights into Lyft’s valuation and growth prospects, access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks.
In other recent news, DoubleVerify (NYSE:DV) Holdings Inc. has updated its revenue and profit outlook for the second quarter, expecting revenue between $180 to $184 million, marking a 17% year-over-year increase at the midpoint. The company also revised its adjusted EBITDA guidance to a range of $52 to $56 million, reflecting a 30% margin at the midpoint. Additionally, DoubleVerify announced a partnership with Lyft to enhance media verification capabilities on Lyft’s advertising platform. This collaboration aims to provide advertisers with tools for improved transparency and measurement.
Meanwhile, Lyft has been the subject of multiple analyst reports. RBC Capital maintained its Outperform rating with a price target of $21, noting Lyft’s robust performance and attractive valuation. Tigress Financial Partners increased its price target to $28, highlighting Lyft’s growth strategies and technology advancements. Morgan Stanley (NYSE:MS) also raised its price target to $19, citing Lyft’s better-than-expected first-quarter results and positive second-quarter guidance.
Lyft’s recent developments include a focus on autonomous vehicle technology, with an upcoming launch in Atlanta with May Mobility. Analysts have noted Lyft’s strategic moves, such as acquisitions and partnerships, which are expected to bolster its market position and growth prospects. The company’s initiatives in artificial intelligence and advertising are also contributing to its enhanced rider engagement and revenue streams.
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