Lyft Inc (NASDAQ:LYFT) Faces Pricing Pressures Amidst Revenue Beat

• Thomas Champion from Piper Sandler sets a price target of $18 for Lyft Inc (NASDAQ:LYFT), indicating a potential increase of about 35.95%.
• Despite a revenue beat in the fourth quarter, LYFT's stock price decreases due to concerns over weak bookings and pricing pressures.
• LYFT projects rides growth in the mid-teens and bookings growth of 10% to 14% year-on-year for the first quarter, amidst a challenging pricing environment.

On February 12, 2025, Thomas Champion from Piper Sandler set a price target of $18 for Lyft Inc (NASDAQ:LYFT). At the time, LYFT's stock price was $13.24, suggesting a potential increase of about 35.95%. This optimistic outlook contrasts with the current market sentiment, as highlighted by Benzinga, where analysts weigh earnings beats against pricing pressures and weak bookings.

Despite reporting a revenue beat for the fourth quarter, LYFT shares are trading lower. Analyst Deepak Mathivanan from Cantor Fitzgerald maintained a Neutral rating but reduced the price target from $15 to $14. This reflects concerns over LYFT's fourth-quarter bookings, which were 1% below Street expectations, despite the earnings beat.

For the first quarter, LYFT projects rides growth in the mid-teens and bookings growth of 10% to 14% year-on-year. However, the midpoint of this guidance falls short of current consensus estimates. The disappointing bookings guidance is attributed to a "deterioration in industry pricing trends" observed since the latter part of the fourth quarter.

LYFT's current stock price is $13.25, reflecting a decrease of 7.92% with a change of $1.14. Today, the stock has fluctuated between a low of $12.06 and a high of $14.19. Over the past year, LYFT has reached a high of $20.82 and a low of $8.93, indicating significant volatility in its stock performance.

The company's market capitalization stands at approximately $5.38 billion, with a trading volume of 86.63 million shares on the NASDAQ exchange. While LYFT is making progress on key product initiatives to enhance its rideshare services, the challenging pricing environment introduces uncertainties to its near-term growth trajectory.