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Investing.com - TD Cowen has raised its price target on Lyft (NASDAQ:LYFT) to $22.00 from $21.00 while maintaining a Buy rating on the ride-sharing company’s stock. The stock, currently trading at $14.56, shows strong momentum with a 54% gain over the past year. According to InvestingPro analysis, Lyft appears undervalued based on its Fair Value metrics.
The price target increase follows Lyft’s second-quarter results, which showed record active riders and rides, though gross bookings were 0.3% below consensus estimates. The company’s EBITDA came in 4.1% above consensus, reflecting operating expense leverage. With revenue growth of nearly 20% and a solid financial health score from InvestingPro, the company demonstrates improving operational efficiency.
TD Cowen noted that Lyft’s third-quarter 2025 gross bookings guidance was 4.5% above consensus at the high end, including a partial quarter contribution from Freenow. The EBITDA guidance was 7% above consensus at the high end.
The firm has adjusted its fiscal year 2025 gross bookings estimate higher by 2% to $18.5 billion, representing 15.0% year-over-year growth. TD Cowen now forecasts 2025 revenue of $6.6 billion, up 14.4% year-over-year and 1.6% above its prior forecast.
TD Cowen also raised its long-term forecast for gross bookings, revenue, and EBITDA by approximately 4%, 5%, and 8% annually on average from 2025 to 2030. The firm noted that Lyft trades at approximately 6x EV/EBITDA and a 12% free cash flow yield based on its 2026 estimates.
In other recent news, Lyft reported its second-quarter 2025 earnings, revealing a significant shortfall in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.10, which was notably below the forecasted $0.26, marking a 61.54% miss. Revenue also fell short, coming in at $1.59 billion against an expected $1.61 billion. Despite these results, Lyft’s gross bookings were reported at $4.5 billion, representing a 12% year-over-year increase, while revenue saw an 11% increase year-over-year.
BMO Capital raised its price target for Lyft to $16.00 from $15.00, maintaining a Market Perform rating after Lyft’s mixed second-quarter results. BofA Securities reiterated its Buy rating on Lyft, maintaining a $12.00 price target, as the company’s active riders reached 26.1 million, slightly exceeding analyst projections. Evercore ISI also maintained its $15.00 price target, reiterating an "In Line" rating following the mixed results. Lyft’s adjusted EBITDA of $129 million surpassed both BMO and Street forecasts, which were $115 million and $125 million, respectively.
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