Lyft stock price target raised to $14 by BofA on Waymo partnership

Investing.com - BofA Securities raised its price target on Lyft (NASDAQ:LYFT) to $14.00 from $12.00 while maintaining an Underperform rating on the ride-sharing company’s stock. The company’s stock has shown remarkable momentum, surging nearly 98% over the past six months, with current trading levels near its 52-week high of $23.50.

The price target adjustment follows Lyft’s announcement of a partnership with Waymo to expand autonomous vehicle services to Nashville in 2026.

Under the agreement, Waymo will utilize Lyft’s fleet management services, including vehicle maintenance and depot operations at a new purpose-built autonomous vehicle facility.

Users will initially be able to order Waymo vehicles directly through the Waymo One app when the service launches in 2026, with integration into the Lyft platform planned for later that year.

Waymo has reported it now provides hundreds of thousands of fully autonomous rides each week, an increase from its previously disclosed figure of more than 250,000 rides weekly.

In other recent news, Lyft has formed a partnership with Waymo to launch autonomous ride-hailing services in Nashville by 2026. This collaboration will see Lyft’s Flexdrive subsidiary manage Waymo’s fleet operations, including maintenance and infrastructure. Additionally, BMO Capital has increased its price target for Lyft to $20, citing this partnership as the company’s third major autonomous vehicle deal in the past ten months. Meanwhile, Lyft is testing a new feature that will inform drivers about potential riders’ tipping habits and punctuality, according to Bloomberg. This feature aims to provide drivers with more information before matching them with riders. Furthermore, Lyft and Uber stocks experienced a decline after Waymo received approval to start autonomous vehicle operations at San Francisco International Airport. This development could impact the ride-hailing companies’ airport business, a significant revenue source. These recent developments highlight Lyft’s strategic moves in the evolving landscape of autonomous vehicles and ride-hailing services.

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