Lyft stock holds steady after BofA reiterates Buy rating on United partnership

Published 07/08/2025, 11:24
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Investing.com - Lyft (NASDAQ:LYFT) maintained its Buy rating from BofA Securities, which reiterated its $12.00 price target following the ride-sharing company’s second-quarter results. According to InvestingPro data, Lyft’s stock has shown strong momentum with a 54% return over the past year, despite recent volatility.

The company reported second-quarter bookings of $4.49 billion and EBITDA of $129 million, largely in line with Street expectations of $4.5 billion and $124.7 million, respectively. Active riders reached 26.1 million, slightly exceeding analyst projections of 25.9 million. The company’s revenue has grown 27.3% year-over-year, with a healthy gross profit margin of 35.3%.

Lyft provided third-quarter bookings guidance of $4.65-4.80 billion, surpassing Street estimates of $4.60 billion, with the pending FreeNow acquisition likely driving most of the upside. The company’s third-quarter EBITDA guidance range of $125-145 million brackets the Street’s prior expectation of $136 million.

BofA Securities highlighted the announcement of Lyft’s partnership with United Airlines, set to launch later this year, as the most significant positive from the earnings report. This partnership comes after Lyft lost Delta as a partner to Uber (NYSE:UBER) earlier this year.

The financial services firm maintained its Buy rating on Lyft stock with a $12.00 price target following the earnings results and partnership announcement. The company currently holds more cash than debt on its balance sheet, supporting its financial stability.

In other recent news, Lyft reported its second-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.10, significantly below the anticipated $0.26, marking a 61.54% miss. Revenue was also below forecasts, coming in at $1.59 billion compared to the expected $1.61 billion. Gross bookings for the quarter reached $4.5 billion, up 12% year-over-year, with revenue showing an 11% increase year-over-year, although both figures were below Street expectations. Evercore ISI maintained an "In Line" rating for Lyft and reiterated a price target of $15.00 following these mixed results. These developments indicate recent challenges for Lyft as it navigates market expectations and performance metrics.

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