Bank of America Securities Sells Lyft with $12 Price Target

Bank of America Securities analyst Mike McGovern maintained a Sell rating on Lyft with a price target of $12.00, citing a 54.26% success rate and an average return of 10.6%. The analyst consensus on the stock is a Hold rating with a $17.09 average price target. Insider sentiment is positive, with 70 insiders buying shares over the past quarter.

Lyft (LYFT) and Baidu (BIDU) have announced a strategic partnership to deploy autonomous ride-hailing vehicles in Europe, starting in the UK and Germany in 2026. This partnership aims to bring Baidu's Apollo Go autonomous vehicles to the European market, marking a significant milestone for both companies.

The partnership was announced on August 4, 2025, and is subject to regulatory approval. Lyft will deploy Baidu's RT6 autonomous vehicles, equipped with Baidu Apollo Go's industry-leading sensor suite, in Germany and the UK. The fleet is expected to scale to thousands of vehicles across the continent [1].

The news comes as Lyft reported mixed earnings for the second quarter. While Lyft's rides increased 14% year-over-year (YoY) to 234.8 million, driven by new offerings and partnerships, its Gross Bookings growth lagged behind Uber's 18% growth [2]. Lyft's adjusted EBITDA reached a record $129.4 million, a 26% YoY increase, but its shares fell 5.7% to $13.10 in after-hours trading following the earnings report [2].

Analysts have varying opinions on Lyft's stock. Bank of America Securities analyst Mike McGovern maintained a Sell rating on Lyft with a price target of $12.00, citing a 54.26% success rate and an average return of 10.6%. The analyst consensus on the stock is a Hold rating with a $17.09 average price target. Insider sentiment is positive, with 70 insiders buying shares over the past quarter [3].

The partnership with Baidu could potentially accelerate Lyft's growth, particularly in the European market. However, regulatory approval remains a key hurdle. Additionally, the success of the autonomous vehicle rollout will depend on factors such as consumer acceptance, regulatory compliance, and technological advancements.

References:
[1] https://search.yahoo.com/search?fr2=p:fp,m:tn,ct:all,kt:org,pg:1,stl:txt,b:&fr=fp-tts&p=Baidu+UK+Lyft
[2] https://www.ainvest.com/news/lyft-q2-earnings-mixed-results-uber-competition-2508/
[3] https://www.morningstar.com/news/dow-jones/2025080617076/lyfts-2q-profit-rises-as-ridership-bookings-grow-update