BofA warns Fed risks policy mistake with early rate cuts
Investing.com - TD Cowen has reiterated its Buy rating and $22.00 price target on Lyft (NASDAQ:LYFT) following the announcement that co-founders Logan Green and John Zimmer are stepping down from the company’s board of directors. The company’s stock has shown strong momentum, delivering a 38% return over the past year, with revenue growing nearly 20% in the last twelve months.
The departure of the co-founders completes a two-year leadership transition that began with the hiring of CEO David Risher, according to TD Cowen’s analysis released Monday.
Lyft also eliminated its dual-class share structure effective August 15, a move TD Cowen characterized as "shareholder friendly" and a demonstration of confidence in Risher’s leadership.
The ride-sharing company remains TD Cowen’s "Best Smidcap Idea for ’25" with the firm noting that Lyft is "well positioned with upcoming growth levers."
The rating reaffirmation comes as Lyft continues its strategic shift under Risher’s direction, with the governance changes potentially signaling a new chapter for the transportation company.
In other recent news, Lyft announced that co-founders Logan Green and John Zimmer will step down from the company’s board of directors on August 14, 2025, as part of a two-year transition plan. They will convert all their Class B shares to Class A shares on August 15, 2025, eliminating the dual-class structure and ensuring equal voting rights for all shareholders. After this conversion, the co-founders will own approximately 9.69 million shares of Class A common stock. Meanwhile, RBC Capital has reiterated an Outperform rating for Lyft, setting a price target of $21.00, citing a confident company outlook despite investor skepticism. Susquehanna, however, has lowered its price target to $14.00, maintaining a Neutral rating, with concerns about Lyft’s European expansion. Lyft’s third-quarter expectations include gross bookings of $4.65-$4.80 billion, reflecting 15% year-over-year growth at the midpoint. Bernstein also adjusted its price target to $16.00 from $18.00, maintaining a Market Perform rating due to growth concerns from recent performance metrics. Lyft’s second-quarter figures showed 12% growth in Gross Bookings and 14% growth in Rides, which were below Bernstein’s expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.