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Investing.com - Mizuho initiated coverage on Lyft (NASDAQ:LYFT), which currently commands a $9.3 billion market cap, with a Neutral rating and a $24.00 price target on Monday. According to InvestingPro data, the company maintains a GOOD financial health score with a solid Piotroski Score of 7.
The financial services firm acknowledged Lyft’s successful execution in reducing incentives, cutting costs, and maintaining mid-teens ride growth, creating a balanced risk-reward profile for investors. This execution has contributed to impressive revenue growth of 19.94% over the last twelve months.
Mizuho highlighted potential insurance savings as a positive catalyst that could improve margins or be passed to consumers to accelerate ride growth, though it noted this opportunity appears largely priced into the stock already.
The firm expressed caution regarding decelerating core third-quarter rides growth (excluding Freenow) and noted that Lyft’s Freenow operations likely require investment due to intense European competition.
Lyft shares have risen approximately 30% over the past month, significantly outperforming the Nasdaq Composite’s 4% gain during the same period, according to Mizuho’s analysis.
In other recent news, Lyft has seen several notable developments, particularly in terms of analyst ratings and partnerships. TD Cowen raised its price target for Lyft to $30, citing positive California insurance reforms as a significant factor in their decision. Piper Sandler also increased their price target to $28, following Lyft’s announcement of a partnership with Google’s Waymo for a full fleet management role in Nashville’s planned autonomous vehicle roll-out in 2026. Canaccord Genuity raised their target to $18, reflecting what they describe as "recent positive developments" at the company.
Additionally, KeyBanc maintained its Sector Weight rating for Lyft, noting the company’s improving execution and growth in market share, as well as increased gross bookings and EBITDA forecasts. Bernstein SocGen Group reiterated its Market Perform rating with a price target of $16, emphasizing Lyft’s strategic positioning in the autonomous vehicle ecosystem through its recent partnership. These developments highlight a period of strategic growth and collaboration for Lyft, as observed by multiple investment firms.
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