Lyft: JPMorgan maintains Neutral, raises PT to $16 from $14.

Lyft: JPMorgan maintains Neutral, raises PT to $16 from $14.

JPMorgan has revised its price target for Lyft (LYFT) to $16 from $14, while keeping a Neutral rating on the stock. This update follows Lyft's recent earnings report, which showcased strong performance and positive market trends. The company achieved record driver hours and the highest weekly rides on record during the last week of March, as highlighted by an analyst's commentary [1].

Lyft reported a 13% annualized growth in its gross bookings to $4.16 billion in Q1, with the number of rides increasing 16% on a year-over-year basis to 218.4 million. The company also achieved record performance in adjusted EBITDA and free cash flow for Q1 2025, marking its 16th consecutive quarter of double-digit year-on-year growth [2]. Lyft expanded its share repurchase program to $750 million, demonstrating financial strength and commitment to shareholder value [3].

Analysts have responded positively to these developments, with Goldman Sachs upgrading Lyft's stock rating to Buy and raising its price target to $20. Benchmark analyst Daniel L. Kurnos reiterated a Buy rating and a $20.00 price target on Lyft shares, citing Lyft's expansion into Canada and lower-density U.S. markets, impressive revenue growth, and favorable partnerships [4].

Despite the earnings miss in Q1, Lyft achieved record levels in gross bookings and free cash flow, and announced an increase in its share repurchase authorization to $750 million. The company is also expanding internationally with the acquisition of FREENOW, positioning itself for sustained growth in Europe [1, 2].

However, Lyft faces challenges such as lower gross bookings per ride in underrepresented markets and potential complexities in managing the FREENOW acquisition. The company also expects the end of the Delta partnership to impact rides by about 1% and gross bookings by 2% over time [1].

References:

[1] https://www.gurufocus.com/news/2848978/lyft-lyft-gains-revised-price-target-from-jpmorgan-postearnings-lyft-stock-news
[2] https://www.investing.com/news/analyst-ratings/benchmark-maintains-lyft-stock-buy-rating-20-target-postearnings-93CH-4037157
[3] https://www.barchart.com/story/news/32320360/is-lyft-stock-a-buy-sell-or-hold-on-750m-buyback-plans
[4] https://www.investopedia.com/lyft-stock-surges-on-new-usd750-million-buyback-plan-11731696