Truist cuts Lyft stock price target to $17 from $20

On Wednesday, Truist Securities revised its price target for Lyft (NASDAQ:LYFT) shares, reducing it from $20.00 to $17.00, while maintaining a Hold rating. Currently trading at $14.39, Lyft has shown significant volatility, with analyst targets ranging from $14 to $26. The adjustment follows Lyft’s mixed fourth-quarter 2024 results and first-quarter 2025 guidance, which presented a picture of robust underlying demand tempered by near-term pricing pressures that began in late December. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model.

The management’s efforts to enhance the customer experience and accelerate product innovation are yielding results, as evidenced by an increase in active riders, usage frequency, and market share. With impressive revenue growth of 25.4% in the last twelve months and analysts expecting continued growth this year, the company shows promising momentum. Despite these positive developments, Truist Securities remains cautious, opting for a Hold position as they await more consistent performance and further evidence to support the gross bookings growth and adjusted EBITDA margin targets set forth at the Analyst Day.

The $500 million share buyback program announced by Lyft is seen as a favorable move, yet Truist Securities has adjusted its estimates and price target to align with the current outlook. The firm highlighted that competitive dynamics, the advancement of autonomous vehicles (AVs), and regulatory changes continue to be critical areas of focus that could influence Lyft’s future performance.

Truist Securities’ stance reflects a watchful approach to Lyft’s stock as the company navigates the balance between growth initiatives and the challenges posed by market conditions and industry factors. The price target adjustment to $17.00 from $20.00 is indicative of the firm’s recalibrated expectations for the ride-sharing company’s financial prospects.

In other recent news, Lyft has reported a mix of achievements and challenges in its fourth-quarter earnings. Despite gross bookings falling short of Canaccord’s expectations, revenue aligned and adjusted EBITDA surpassed their estimates. The company demonstrated financial resilience, ending the quarter with $760 million in cash and generating $140 million in free cash flow. A $500 million share buyback program was also authorized by Lyft’s board.

Canaccord Genuity and BofA Securities maintained their Buy rating for Lyft, with Canaccord setting a price target of $22 and BofA raising its target from $19 to $21. However, Lyft’s first quarter of 2025 guidance was slightly below market consensus. RBC Capital Markets also adjusted its expectations for Lyft, noting a less favorable risk/reward balance based on fundamentals.

Additionally, Lyft announced plans to introduce autonomous robotaxis in Dallas by 2026, in partnership with Mobileye. This move is part of Lyft’s broader strategy to integrate autonomous vehicles into its service offerings. These are the recent developments for Lyft, a company committed to innovation in the transportation sector.

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