Lyft stock launches autonomous vehicle service in Atlanta with May Mobility

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating on Lyft (NASDAQ:LYFT), the $7.57 billion ride-hailing company, as it launches its first U.S. autonomous vehicle service in Atlanta. The company, which has seen impressive revenue growth of nearly 20% and maintains positive net income, appears undervalued according to InvestingPro Fair Value analysis.

The service, created through a partnership with May Mobility, establishes direct competition with Waymo, which already offers driverless rides in Atlanta through Uber.

May Mobility will operate a small fleet of modified Toyota Sienna minivans equipped with LiDAR sensors, cameras, and radars throughout a seven-square-mile area in Midtown Atlanta.

The vehicles will initially include human safety drivers as the service begins operations, according to Cantor Fitzgerald analyst Deepak Mathivanan.

May Mobility utilizes LiDAR sensors from Ouster (NASDAQ:OUST), for which Cantor Fitzgerald also maintains a Neutral rating.

In other recent news, Lyft announced the pricing of $450 million in convertible senior notes due in 2030, which will be offered to qualified institutional buyers. This transaction is expected to generate approximately $438.8 million in net proceeds after expenses, with an option for initial purchasers to buy an additional $50 million in notes. In legislative developments, California lawmakers backed two bills that could benefit rideshare companies like Lyft by allowing drivers to collectively bargain while maintaining their independent contractor status. Despite these potential legislative advantages, Cantor Fitzgerald maintained its Neutral rating on Lyft with a $14.00 price target, while Bernstein reiterated a Market Perform rating with a $16.00 price target. RBC Capital, however, remains optimistic, reiterating an Outperform rating with a price target of $21.00, citing growth opportunities in Lyft’s core ride-hailing business. These developments highlight a mix of strategic financial moves and legislative changes that could impact Lyft’s future trajectory.

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