Analyst Thomas Champion of Piper Sandler maintained a Buy rating on Lyft, boosting the price target to $28.00.
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Thomas Champion has given his Buy rating due to a combination of factors, primarily highlighting Lyft’s strategic partnerships and financial projections. The recent collaboration with Waymo to launch a fully autonomous ride-hailing service in Nashville by 2026 is a significant step forward, enhancing Lyft’s position in the autonomous vehicle (AV) ecosystem. This partnership, along with others like May Mobility, Mobileye, and Baidu, underscores Lyft’s commitment to innovation and expansion in the AV space.
Additionally, Thomas Champion notes that Lyft’s management is effectively navigating the early stages of the AV transition, with pricing pressures appearing to stabilize. The financial outlook is promising, with an increase in revenue and EBITDA estimates, and a compelling valuation as Lyft trades at approximately 10 times the 2027 estimated free cash flow per share. The price target has been adjusted from $20 to $28, reflecting confidence in Lyft’s growth trajectory and strategic initiatives.
Champion covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Netflix. According to TipRanks, Champion has an average return of 9.4% and a 56.99% success rate on recommended stocks.
In another report released on September 17, Roth MKM also maintained a Buy rating on the stock with a $24.00 price target.