Piper Sandler raises Lyft stock price target to $28 on Waymo partnership

Investing.com - Piper Sandler raised its price target on Lyft (NASDAQ:LYFT) to $28.00 from $20.00 on Friday, while maintaining an Overweight rating on the ride-sharing company’s stock. The company’s stock has shown remarkable momentum, delivering an 87% return over the past six months and maintaining profitability over the last twelve months.

The price target increase follows Lyft’s announcement of a partnership with Google’s Waymo to provide full fleet management for an autonomous vehicle roll-out in Nashville planned for 2026.

Piper Sandler noted that the Waymo deal adds to Lyft’s existing autonomous vehicle partnerships with May Mobility, Mobileye, and Baidu, providing "more validity to Lyft’s right to win in the AV ecosystem."

The firm updated its financial model for Lyft , raising its fiscal year 2026 revenue estimate by 1% and EBITDA forecast by 6%, citing greater contribution from FREENOW and recent management commentary.

Despite recent stock price appreciation, Piper Sandler believes Lyft’s valuation remains "compelling," noting the company trades at approximately 10 times the firm’s 2027 estimated free cash flow per share.

In other recent news, Lyft has announced a partnership with Waymo to provide autonomous vehicle services in Nashville starting in 2026, with Waymo owning the fleet and Lyft managing the vehicles. This development has led to several analysts adjusting their price targets for Lyft. Jefferies increased its target to $22 while maintaining a Hold rating, citing the potential impact of the Waymo partnership. Canaccord Genuity also raised its price target to $18, reflecting positive developments at the company, and maintained a Hold rating. BMO Capital adjusted its target to $20, noting that this is Lyft’s third major autonomous vehicle deal in the past ten months, while keeping a Market Perform rating. Bernstein reiterated its Market Perform rating with a $16 target, describing the partnership as a significant step in Lyft’s autonomous vehicle strategy. BofA Securities raised its target to $14, maintaining an Underperform rating, following the partnership announcement. These recent developments highlight the strategic moves Lyft is making in the autonomous vehicle space.

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