Lyft stock holds steady as Bernstein reiterates Market Perform rating

Investing.com - Bernstein SocGen Group maintained its Market Perform rating on Lyft (NASDAQ:LYFT) with a price target of $16.00 on Thursday. The stock has shown remarkable momentum, delivering a 98% return over the past six months and currently trading near its 52-week high of $23.50.

The firm’s analyst Nikhil Devnani highlighted a significant development for Lyft in its autonomous vehicle (AV) strategy, calling a recent partnership announcement "a big win" for the rideshare company’s efforts to position itself as a strategic partner and demand aggregator in the AV ecosystem. With a market capitalization of $9.3 billion and positive net income expected this year, according to InvestingPro data, Lyft appears well-positioned for this strategic move.

Bernstein noted that while Lyft had previously onboarded smaller partners like May Mobility, this latest announcement represents a more substantial achievement. The firm specifically mentioned Waymo as a "best-in-class" autonomous vehicle company.

The research note indicated that the partnership demonstrates recognition of Lyft’s value proposition, both as a strategic partner with fleet management capabilities and as a competitive alternative to Uber.

Bernstein clarified that the arrangement is not exclusive to Lyft, as vehicles will also be available through Waymo’s own network, in an arrangement similar to Waymo’s Phoenix operations with Uber.

In other recent news, Lyft has announced a significant partnership with Waymo to launch autonomous ride-hailing services in Nashville by 2026. This collaboration marks Lyft’s third major autonomous vehicle deal in the last ten months. As part of the agreement, Waymo will own the fleet of autonomous vehicles, while Lyft will manage them through its Flexdrive subsidiary, which will handle maintenance and operations. Following this announcement, several analyst firms have adjusted their price targets for Lyft. Jefferies raised its target to $22, maintaining a Hold rating, while BMO Capital increased its target to $20, keeping a Market Perform rating. BofA Securities also adjusted its target to $14, though it retained an Underperform rating for the stock. Additionally, Lyft is testing a new feature that provides drivers with information about riders’ tipping habits and punctuality, aiming to enhance the driver experience. These developments reflect Lyft’s ongoing efforts to innovate and expand its services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.