Daniel Kurnos, an analyst from Benchmark Co., maintained the Buy rating on Lyft (LYFT – Research Report). The associated price target remains the same with $20.00.
Daniel Kurnos has given his Buy rating due to a combination of factors that highlight Lyft’s potential for growth and strategic positioning. Despite a slight revenue miss, Lyft’s second-quarter rides growth and gross bookings were guided above expectations, indicating strong operational performance. Kurnos notes that Lyft is expanding in emerging markets such as Canada and lower-density U.S. areas, which are promising for future growth. Additionally, the partnership with DoorDash and the acquisition of FREENOW are seen as strategic moves that could enhance Lyft’s global reach and increase its total addressable market.
Moreover, Lyft’s early-stage advertising initiatives and the potential for international media spend present new revenue opportunities. The company’s increased and accelerated share repurchase authorization signals strong confidence in its business and valuation. Despite potential macroeconomic challenges, Kurnos believes that Lyft’s execution story is unfolding positively, with EBITDA guidance showing incremental scale benefits. These factors collectively support the Buy rating, positioning Lyft as a top investment idea.
Kurnos covers the Communication Services sector, focusing on stocks such as Magnite, Nexstar Media Group, and TEGNA. According to TipRanks, Kurnos has an average return of 0.4% and a 44.23% success rate on recommended stocks.
In another report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a $21.00 price target.