Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Susquehanna has lowered its price target on Lyft (NASDAQ:LYFT) to $14.00 from $18.00 while maintaining a Neutral rating on the ride-sharing company’s stock. The company, currently trading at $13.41, shows signs of being undervalued according to InvestingPro analysis, with a robust revenue growth of 19.9% over the last twelve months.
For the third quarter, Lyft expects gross bookings of $4.65-$4.80 billion, representing 15% year-over-year growth at the midpoint, which is 3% above analyst estimates and consensus. Rides are projected to grow mid-teens year-over-year compared to the 13% growth rate anticipated by analysts.
The company forecasts third-quarter EBITDA between $125-$145 million, 5% above Susquehanna’s estimate and broadly in line with consensus at the midpoint. Management expressed optimism about growth opportunities in Europe following the acquisition of Freenow, which closed at the end of July.
Lyft stated that the Freenow acquisition will increase annual gross bookings by approximately €1 billion, with the third-quarter guidance including two months of impact from the acquisition. The company noted that Freenow’s business is more seasonal than Lyft’s core operations, with stronger performance in the second and fourth quarters.
The ride-sharing company also announced a new partnership with United Airlines that will allow riders to accumulate United miles through Lyft rides, with positive financial impact expected beginning in 2026, while its Lyft Silver product is anticipated to have a modest financial impact in 2025 as it ramps up.
In other recent news, Lyft’s second-quarter performance has drawn mixed reactions from analysts. The company reported gross bookings and revenue that slightly missed Street expectations, though its EBITDA performance exceeded expectations, according to Cantor Fitzgerald. TD Cowen responded to the results by raising its price target to $22, citing record active riders and rides, despite bookings being slightly below estimates. Conversely, Bernstein lowered its price target to $16 due to growth concerns, as Lyft’s gross bookings and rides growth fell short of expectations. DA Davidson also reduced its target to $14.20, describing the quarterly performance as mixed and noting the impact of the Freenow acquisition. Benchmark maintained a Buy rating and a $20 price target, highlighting strong third-quarter guidance. These developments indicate varied analyst perspectives on Lyft’s financial health and future prospects.
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