RBC Capital maintains outperform rating on Lyft stock

On Thursday, RBC Capital analysts reiterated their Outperform rating on Lyft stock (NASDAQ: NASDAQ:LYFT) with a price target of $21.00, aligning closely with InvestingPro’s Fair Value assessment. The analysts highlighted ongoing rationality in the ride-hailing sector, noting similar pricing and pick-up times for both Lyft and its competitor, Uber (NYSE:UBER). The company’s revenue has shown robust growth of 27% over the last twelve months.

The report emphasized that Lyft has been an outperformer in its sector year-to-date, ranking fifth overall with an 18% increase compared to the Nasdaq’s 1% rise. The analysts attributed this performance to Lyft’s minimal exposure to tariffs and generative AI concerns, alongside strong execution. This momentum is reflected in InvestingPro data, which shows particularly strong returns over both the last month and quarter.

Lyft’s upcoming autonomous vehicle launch in Atlanta with May Mobility was noted as a positive development. However, the analysts flagged the upcoming Tesla (NASDAQ:TSLA) launch as a potential risk, though they suggested that any Tesla-related stock pullback could present a buying opportunity.

The analysts also mentioned that Lyft’s stock is trading at an attractive valuation, specifically at 7.3 times its expected 2026 EBITDA. This valuation, combined with the company’s strategic moves, was presented as a reason for the continued Outperform rating.

In other recent news, Lyft’s financial performance and strategic initiatives have garnered significant attention from analysts. The company reported stronger-than-expected first-quarter results, with bookings and EBITDA exceeding Morgan Stanley (NYSE:MS)’s estimates by 16%. This led to an increase in Lyft’s second-quarter guidance, indicating potential growth in bookings and EBITDA by 3% and 15%, respectively. Tigress Financial Partners and Benchmark both maintained a Buy rating, with Tigress raising its price target to $28, emphasizing Lyft’s technology advancements and market expansion efforts, including its acquisition of the European taxi-hailing app FREENOW. Meanwhile, Morgan Stanley raised its price target to $19, maintaining an Equalweight rating, while RBC Capital Markets reiterated an Outperform rating with a $21 target, highlighting Lyft’s attractive valuation and potential market expansion.

Raymond (NSE:RYMD) James maintained a Market Perform rating, noting Lyft’s solid performance and the importance of its autonomous vehicle strategy, particularly partnerships with May Mobility and Mobileye. Lyft’s commitment to innovation is further underscored by its autonomous vehicle initiatives, with anticipated launches in select cities expected to drive growth. The company’s strategic share repurchases and partnerships, such as with DoorDash (NASDAQ:DASH), are also seen as favorable developments. Despite a slight miss in headline revenue, Benchmark remains optimistic about Lyft’s growth potential, citing its expansion into Canada and lower-density U.S. markets as key opportunities. Overall, analysts highlight Lyft’s strategic moves and robust financial performance as indicators of potential growth in the competitive rideshare market.

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