BETA Technologies launches IPO of 25 million shares priced $27-$33
Investing.com - Benchmark raised its price target on Lyft (NASDAQ:LYFT) to $26.00 from $20.00 on Monday, while maintaining a Buy rating on the rideshare company’s stock. According to InvestingPro data, industry leader Uber (NYSE:UBER) currently trades near its 52-week high of $99.70, with a substantial market capitalization of $205 billion.
The price target increase follows Lyft’s announcement last week of its first partnership with autonomous vehicle company Waymo, which Benchmark called "long overdue" and significant for breaking Uber’s (NYSE:UBER) "perceived stranglehold" in the autonomous vehicle space. Uber maintains its market leadership with strong financial health, earning a "GREAT" rating from InvestingPro analysts, and impressive revenue growth of 18.15% over the last twelve months.
Benchmark noted that despite the positive developments, its EBITDA projections for Lyft remain "well short" of the company’s own 2027 targets, though the firm is approximately $55 million above Wall Street consensus estimates.
The research firm predicted Lyft will approach $1 billion in EBITDA by 2027, compared to the Street’s expectation of $830 million, suggesting the stock "still looks very attractive from a valuation perspective."
Benchmark maintained Lyft as one of its "best ideas" while cautioning investors that the path forward "could very well be a bumpy ride."
In other recent news, Uber Technologies announced a strategic investment in Flytrex, marking its initial foray into autonomous drone delivery for Uber Eats. The collaboration aims to integrate Flytrex’s drone delivery system with Uber’s platform, with pilot programs slated to begin in select U.S. markets by the end of 2025. Additionally, Uber Eats has partnered with Designer Brands to offer footwear and accessories from nearly 500 DSW stores through its platform, allowing customers to order items for on-demand or scheduled delivery. In another development, Uber Technologies and Pipe have formed a strategic relationship to offer working capital to U.S. restaurants via the Uber Eats Manager platform, providing tailored capital offers based on business performance.
Meanwhile, Uber faces legal challenges as the U.S. government filed a lawsuit alleging discrimination against passengers with disabilities, including those with service animals or stowable wheelchairs. Furthermore, Uber and Lyft might encounter increased competition after Waymo received approval to begin autonomous vehicle operations at San Francisco International Airport, potentially impacting their airport business revenue. These recent developments highlight Uber’s strategic expansions and legal hurdles in the current market landscape.
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