UBS Reiterates Neutral Rating on Lyft (LYFT)

UBS analyst Lloyd Walmsley reiterated a Neutral rating and $19.00 price target on Lyft (NASDAQ: LYFT).

The analyst comments "We walk away from Lyft's first investor day directionally more positive as it set 2024- 2027 targets ahead of consensus. Key guidance parameters included: 1) 2024-2027 CAGR gross bookings (GBs) of c.15%, implying 4 ppt upside vs pre-event consensus of 11%, 2) 2027 Adjusted EBITDA margin of ~4%, implying up to 600bps upside vs consensus for 3.4%, and 3) annual free cash flow conversion of 90% or more vs consensus annual average of 87%. Incremental to the story was that Lyft is leveraging telemetrics data to drive insurance efficiency and Lyft Media is set to contribute more meaningfully at >$400M to GBs by 2027; both updates are margin-accretive and should improve outlook for 2027 and beyond. We maintain our Neutral rating for now, as we see Uber as better-positioned with ongoing benefits from rideshare/delivery cross platform synergies, better mid-term margin profile on No.1 rideshare category position in US, and announced capital returns."

For an analyst ratings summary and ratings history on Lyft click here. For more ratings news on Lyft click here.

Shares of Lyft closed at $15.69 yesterday.

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