Lyft stock price target maintained at $21 by TD Cowen amid strong demand

Published 16/07/2025, 17:56
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Investing.com - TD Cowen has reiterated its Buy rating and $21.00 price target on Lyft (NASDAQ:LYFT) ahead of the company’s second-quarter 2025 earnings report, due July 30. According to InvestingPro data, analyst targets for the stock range from $10 to $28, with the company currently trading at $14.76.

The firm expects Lyft to report revenue growth of 13.4% year-over-year in the second quarter, slightly lower than the 13.5% growth recorded in the first quarter of 2025. TD Cowen forecasts gross bookings to increase by 13.5% year-over-year, showing sequential improvement due to easier year-over-year comparisons. The company has demonstrated strong momentum, with revenue growing 27.3% over the last twelve months to nearly $6 billion.

The research firm projects Lyft’s revenue to reach $1.63 billion in the second quarter, which is 1.1% above consensus estimates. TD Cowen also anticipates EBITDA of $126.4 million, representing 23% year-over-year growth, compared to Lyft’s guidance range of $115 million to $130 million and consensus estimates of $123.9 million. InvestingPro analysis reveals 12 additional key insights about Lyft’s financial health and valuation metrics, available exclusively to subscribers.

TD Cowen believes investors will focus on rideshare trends extending into July as they evaluate Lyft’s performance and outlook.

The firm maintained its positive stance on Lyft stock, citing accelerating gross bookings and robust revenue amid strong ride demand as key factors supporting its Buy rating and $21 price target.

In other recent news, Lyft has expanded its rideshare service to Puerto Rico, marking a significant step in its North American growth strategy. The company began recruiting drivers in May, with incentives like $100 bonuses for completing 50 rides in San Juan. This expansion aligns with strong demand from both locals and tourists, though Lyft currently lacks a corporate office on the island. In analyst updates, Oppenheimer raised its price target for Lyft to $20, citing reduced concerns over robotaxi competition and a stable demand outlook. Conversely, Canaccord Genuity downgraded Lyft to Hold, lowering its price target to $14 due to uncertainties in the autonomous vehicle market. Additionally, New York City has finalized new pay rules for rideshare drivers, implementing a 5% minimum-pay increase. These rules also aim to prevent companies like Lyft from restricting driver access to their apps. Meanwhile, Bernstein maintained a Market Perform rating for Lyft, noting the operational importance of its Flexdrive vehicle rental program for drivers.

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