Lyft: Susquehanna Downgrades to Neutral with PT Cut to $14 from $18.

Lyft: Susquehanna Downgrades to Neutral with PT Cut to $14 from $18.

Susquehanna International Group has downgraded its rating on Lyft (NASDAQ: LYFT) to Neutral from Overweight, along with a price target reduction from $18 to $14. The downgrade comes following the company's mixed second-quarter 2025 earnings report. Despite reporting record rides and strong financial performance, Lyft missed revenue and earnings per share (EPS) estimates [3].

Lyft's GAAP revenue for the second quarter of 2025 was $1.60 billion, slightly below analyst expectations of $1.61 billion (GAAP), falling short by $11.0 million, or 0.68% (GAAP) [3]. Net income (GAAP) reached $40.3 million, a sharp rise from $5.0 million in GAAP net income in Q2 2024. Earnings per share (GAAP) came in at $0.10, short of the estimated $0.24. The quarter marked all-time records for rides, gross bookings, and free cash flow.

Susquehanna noted that while Lyft's operational performance was impressive, the company's revenue growth and earnings missed expectations. The firm cited uncertainty regarding the integration of the Freenow acquisition and the impact of regulatory changes on the company's growth prospects. The downgrade reflects a more cautious view on Lyft's ability to maintain its current growth trajectory [1].

In contrast, other analysts have shown varied responses to Lyft's recent performance. DA Davidson lowered its price target to $14.20 from $15.50 while maintaining a Neutral rating [1]. TD Cowen raised its price target from $21 to $22 while maintaining a Buy rating, and Benchmark reiterated its Buy rating with a $20 price target [1]. Cantor Fitzgerald maintained a Neutral rating with a $14 price target, acknowledging the company’s EBITDA outperformance despite bookings falling short [1]. BMO Capital adjusted its price target from $15 to $16, highlighting Lyft’s adjusted EBITDA significantly outpacing expectations [1]. BofA Securities also reiterated a Buy rating, maintaining a $12 price target, noting that active riders reached 26.1 million, slightly above projections [1].

Looking ahead, Lyft's third-quarter guidance includes two months of operations from the Freenow acquisition. The company forecasts gross bookings between $4.65 billion and $4.80 billion (non-GAAP), implying growth of 13% to 17% year over year. Adjusted EBITDA (non-GAAP) guidance falls in the $125 million to $145 million range, with Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) expected between 2.7% and 3.0% [3].

References:
[1] https://ng.investing.com/news/analyst-ratings/da-davidson-lowers-lyft-stock-price-target-to-1420-on-mixed-results-93CH-2051587
[2] https://www.investing.com/economic-calendar/#20250814
[3] https://www.nasdaq.com/articles/lyft-lyft-q2-rides-jump-14-record