Lyft (LYFT) PT Lowered to $15 at DA Davidson
DA Davidson analyst Tom White lowered the price target on Lyft (NASDAQ: LYFT) to $15.00 (from $16.00) while maintaining a Neutral rating.
The analyst comments "We remain NEUTRAL on shares of LYFT following mixed 4Q'24 results that were a bit light on Gross Bookings but still up a solid +15% (with Rides growth also up 15% on +10% Active Rider growth). 4Q adj. EBITDA of $112.8M was ahead of $104M consensus, and LYFT posted another quarter of GAAP Net Income profits (as well as $140M in 4Q FCF). 1Q Rides growth guidance of mid-teens was constructive but is expected to translate to slower 1Q GB growth of 10%-14% (Street was modeling +14.8%) w/LYFT citing some market-driven pressure on pricing starting late in 4Q and persisting qtr-to-date (lapping Leap Year also creates 100 bps headwind to 1Q). Remain NEUTRAL; Estimate changes - Our 2025 GB forecast declines by 1.1% on recent pricing pressures and the impact of the termination of LYFT's Delta Airlines partnership. Our 2025 adj. EBITDA estimate increases slightly from $529.3M to $553.5M on LYFT's ongoing operating expense discipline. We trim our 12-month price target from $16 to $15 (implies just under 9x our 2025 EV/EBITDA) due to LYFT's modestly lower growth profile entering CY'25."