Lyft Inc (NASDAQ:LYFT) Stock Update: Neutral Rating and Price Target Adjustment

• Piper Sandler adjusted Lyft's rating to Neutral, maintaining a hold action with a current stock price of $13.42.
• Despite surpassing revenue expectations, Lyft's fourth-quarter bookings fell short by 1%, leading to a reduced price target from $15 to $14 by Cantor Fitzgerald.
• Lyft anticipates rides growth in the mid-teens and bookings growth between 10% and 14% year-on-year for the first quarter, amidst challenges in the pricing environment.

On February 12, 2025, Piper Sandler adjusted the grade of Lyft Inc (NASDAQ:LYFT) to Neutral, maintaining a hold action. At the time, the stock price was $13.42.

Lyft, a major player in the ridesharing industry, competes with companies like Uber. It offers transportation services through its app, connecting drivers with passengers. Despite surpassing revenue expectations for the fourth quarter, Lyft's shares declined. 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 performance, as its fourth-quarter bookings fell 1% short of Wall Street expectations, despite an earnings beat.

For the first quarter, Lyft anticipates rides growth in the mid-teens and bookings growth between 10% and 14% year-on-year. However, the midpoint of this guidance is below current consensus estimates. The weaker bookings guidance is attributed to a "deterioration in industry pricing trends" observed since the latter part of the fourth quarter, as highlighted by Cantor Fitzgerald. Lyft is making "steady progress on key product initiatives" to enhance its rideshare services. However, these efforts face challenges due to the difficult pricing environment, introducing significant uncertainties to its near-term growth trajectory.

The current stock price of Lyft is $13.46, reflecting a decrease of 6.44% with a change of $0.93. Today, the stock has fluctuated between a low of $12.06 and a high of $14.19. Over the past year, Lyft's stock has reached a high of $20.82 and a low of $8.93. The company has a market capitalization of approximately $5.47 billion, with a trading volume of 67.34 million shares on the NASDAQ.