Analyst John Colantuoni of Jefferies maintained a Hold rating on Lyft, with a price target of $22.00.
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John Colantuoni has given his Hold rating due to a combination of factors surrounding Lyft’s recent developments and market positioning. The partnership with Waymo to launch autonomous vehicle services in Nashville is seen as a positive step for Lyft, potentially enhancing its relevance in the growing AV market. This collaboration is expected to improve Lyft’s unit economics, contributing to overall profitability. However, despite these advancements, Uber is still perceived as the stronger player in the AV space due to its scale, technology, and strategic partnerships.
While Lyft’s partnership with Waymo is a strategic move, it also highlights Waymo’s intent to diversify its partnerships and not rely solely on Uber. This diversification is seen as a strategy to avoid dependency on a single partner. Additionally, the increase in Lyft’s price target to $22 reflects improved EBITDA estimates and benefits from insurance reforms, but the Hold rating remains due to Lyft’s market share losses, which offset its faster growth compared to the broader internet sector.
According to TipRanks, Colantuoni is a 5-star analyst with an average return of 12.0% and a 64.39% success rate. Colantuoni covers the Consumer Cyclical sector, focusing on stocks such as DoorDash, Carvana Co, and Airbnb.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $20.00 price target.