Lyft, Inc.
The company maintained its previously announced outlook for the second quarter and directional commentary for 2024.
Here's a glimpse into analysts' reactions to the company's quarterly performance:
- RBC Capital Markets analyst Brad Erickson reiterated the Outperform rating on the stock, with the price forecast of $24.
Erickson particularly highlighted the insurance cost visibility, which should reduce the risk of a nearer-term EBITDA miss.
According to the analyst, LYFT is competing in lock-step with Uber Technologies, Inc.
The analyst also underscored the firm's improving visibility on cost drivers, which is likely raising the odds of upward revisions to Street EBITDA estimates.
- BofA Securities analyst Michael McGovern upgraded Lyft to Buy from Underperform, raising the price forecast to $20 from $15.
Lyft could also see outsize multiple expansion given lower rates, the analyst adds.
The company's greater focus on fixed cost savings, share count, and Media growth makes a discounted valuation at 0.9x 2025E revenues an attractive entry point, McGovern adds.
- Goldman Sachs analyst Eric Sheridan reiterated Neutral rating on the stock, with a price forecast of $21.
Lyft also talked about the importance of both growth and balance of the marketplace, driving optimizations & efficiency around price, ETAs and driver earnings, the analyst adds.
- BMO Capital Markets analyst Brian J. Pitz reiterated Market Perform rating on Lyft, raising the price forecast to $19 from $18.
Pitz also sees a potential for changes in driver classification in Massachusetts, with a decision expected in summer 2024.
According to the analyst, the company's adjusted EBITDA margin of 4% by 2027 appears optimistic ahead of policy/ insurance changes.
However, while Lyft is an innovator, retail media network competition and fragmentation is rising and advertiser adoption could prove challenging, Pitz cautioned.
- Piper Sandler analyst Thomas Champion reiterated the Overweight rating on Lyft, raising the price forecast to $24 from $23.
Champion expects numbers to rise streetwide.
- Needham analyst Bernie McTernan maintained the Hold rating on Lyft.
- Wedbush analyst Scott Devitt reiterated the Neutral rating on the stock, raising the price forecast to $19 from $18.
According to the analyst, the company's commentary is incrementally positive for Uber, as management outlined the attractive rideshare market opportunity that remains underpenetrated at less than 2% of personal vehicle trips in the U.S.
Price Action: LYFT shares are trading higher by 0.83% to $15.82 at last check Friday.