Cautious Optimism: Mahaney Maintains Hold Rating on Lyft Amid Growth and Profitability Concerns

Analyst Mark Mahaney of Evercore ISI reiterated a Hold rating on Lyft, boosting the price target to $30.00.

Mark Mahaney’s rating is based on a combination of factors, including Lyft’s recent financial performance and future outlook. Although Lyft reported a solid quarter with improved execution under CEO David Risher, there are still concerns about the company’s ability to maintain top-line growth while increasing profitability. The company’s Gross Bookings exceeded expectations, but revenue growth lagged behind, suggesting a lower take-rate compared to the previous year.
Additionally, while Lyft has made progress in reducing incentives and improving insurance strategies, Mahaney remains cautious about the sustainability of these positive trends. The current valuation of Lyft’s stock is considered reasonable at 12 times the projected 2026 EBITDA, but Mahaney seeks more consistent positive fundamental trends before becoming more bullish on the stock. As a result, he maintains a Hold rating, preferring to see further evidence of sustained growth and profitability.

In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $24.00 price target.