LYFT: Rising Rideshare Partnerships Will Drive Stronger Earnings Power Ahead

Analysts have raised their blended price target for Lyft from about $24 to roughly $32 per share. They cite growing confidence in accelerating bookings and rides growth, improving execution, and a clearer path to sustained profitability.

Analyst Commentary

Bullish analysts are increasingly highlighting Lyft's improving execution and clearer earnings trajectory as key drivers behind recent price target increases, even when quarterly results are characterized as mixed or in line with expectations. Many point to accelerating rides and gross bookings guidance that is running ahead of prior forecasts, reinforcing confidence that the company can deliver durable top line growth while expanding margins.

Several firms have lifted their price targets substantially, in some cases by double digits, as they reassess Lyft's competitive positioning and the quality of its recent quarters. While many ratings remain Neutral or equivalent, the upward revisions to valuation frameworks suggest that the market may be underestimating the potential for Lyft to compound revenue and earnings as management continues to execute on strategic priorities.

There is also a growing view that Lyft's product enhancements, partnerships, and technology investments are beginning to translate into more predictable marketplace dynamics. Bullish analysts see a healthier balance between rider demand and driver supply, supported by targeted initiatives to improve user experience and ride reliability. This, in turn, is feeding into more constructive assumptions on take rates, contribution margins, and overall profitability in coming years.

In addition, medium term commentary around 2026 and beyond is having an outsized impact on sentiment. Forward looking guidance on gross bookings, combined with early evidence of operating leverage, is leading some on the Street to build more optimistic scenarios for earnings power through 2027. As a result, revised price targets are increasingly anchored to scenarios that assume sustained double digit growth in rides, continued cost discipline, and incremental upside from new revenue streams.

Bullish Takeaways

• Bullish analysts are raising price targets as they gain confidence that Lyft can sustain accelerating gross bookings and rides growth, supporting higher long term revenue and earnings assumptions in their valuation models.
• Improved execution under current leadership, including more disciplined cost management and better marketplace balance, is leading to upgraded expectations for margin expansion and a faster path to scaled profitability.
• New partnerships, including autonomous vehicle collaborations and airline integrations, are viewed as meaningful growth catalysts that can diversify demand, deepen customer engagement, and justify higher multiples on future earnings.
• Positive commentary around 2026 to 2027, including benefits from insurance cost relief and cross platform integration, is encouraging analysts to embed stronger medium term cash flow and earnings scenarios, supporting the higher blended price target near $32 per share.

What's in the News

• VectorCare and Lyft launched the Lyft Smart on FHIR App, integrating Lyft's nationwide transportation network directly into Epic's EHR to let care teams schedule and track patient rides from within the medical record. The initiative aims to speed discharges and reduce missed appointments (Key Developments).
• Oak View Group named Lyft the Official Rideshare Partner for more than 75 OVG-managed venues, giving Lyft prominent branding at arenas and theaters that host over 65 million fans annually and deepening its presence in live entertainment transportation (Key Developments).
• Lyft and Curb formed a strategic partnership that connects Lyft riders to Curb's licensed taxi network via the Curb Flow platform, starting in Los Angeles to improve pickup times and expand ride options for both riders and drivers (Key Developments).
• Lyft introduced a new collaboration with United Airlines that lets U.S. riders earn MileagePlus miles on eligible Lyft rides. There are plans for members to redeem miles for rides and receive automated flight alerts and ride reminders starting in early 2026 (Key Developments).
• Lyft and Waymo agreed to bring Waymo's fully autonomous ride hailing service to Nashville in 2026. Lyft's Flexdrive unit will manage AV fleet operations and a new facility will support charging and vehicle service, advancing Lyft's hybrid human and autonomous network strategy (Key Developments).

Valuation Changes

• The fair value estimate has risen from about $24.00 to roughly $31.78 per share, reflecting higher confidence in Lyft's long term earnings power.
• The discount rate has increased slightly from approximately 8.07 percent to about 8.25 percent, implying a modestly higher required return on equity risk.
• Revenue growth has been marked up from around 14.40 percent to roughly 16.04 percent, signaling stronger expectations for top line expansion.
• The net profit margin has improved modestly from about 7.49 percent to approximately 7.58 percent, indicating a small upgrade to long run profitability assumptions.
• The future P/E multiple has risen from roughly 16.9 times to about 18.9 times, suggesting a higher valuation being applied to anticipated future earnings.