BMO Capital reiterated its Market Perform rating and $23.00 price objective on Lyft (NASDAQ:LYFT) in the wake of the companys most recent quarterly report. At the stocks then-current level of $14.79, the target implies a notable uptick from the market price.
The ride-hailing company reported bookings of $5.07 billion, a figure that matched Street expectations. Revenue came in slightly ahead of consensus once a one-time adjustment for legal and regulatory reserves - recorded as a contra-revenue item - was taken into account. Lyfts enterprise value stands at $5.85 billion and the company has sustained 14.9% revenue growth over the last twelve months.
Operational performance included adjusted EBITDA of $147 million, which topped analyst estimates by roughly 5%. BMO Capital analyst Brian J. Pitz highlighted that record-high active rider counts supported a 19% year-over-year increase in bookings, while managements operational discipline contributed to margin expansion of 240 basis points.
Balance-sheet indicators noted in the report show Lyft holding more cash than debt, a position often interpreted as financial stability, even as the company trades at a relatively elevated price-to-earnings ratio of 46.7.
Looking ahead, Lyfts guidance for the first quarter of fiscal 2026 included a bookings midpoint that sat in line with consensus expectations. However, the mid-point of adjusted EBITDA guidance was $130 million, coming in $10 million shy of Street forecasts. Management expects net income to grow over the coming year, with earnings per share projected at $1.26 for fiscal 2025.
In its note, BMO Capital identified several growth levers it expects to support Lyfts forward trajectory - business travel, strategic partnerships and higher-value transportation modes - while retaining its Market Perform rating and the $23 target.
Outside of BMO Capitals view, multiple brokerages have revised their price targets in recent weeks amid mixed operational signals and pressure on ride volumes. RBC Capital trimmed its target to $22 after describing the fourth quarter as very challenging, when Lyft reportedly missed ride volume estimates by about 5%.
Morgan Stanley lowered its target to $17, flagging concerns about Lyfts growth path relative to peers. Wells Fargo set a $18 target following a reported global rides growth rate of 11%, a pace that fell short of the companys own mid-to-high teens outlook. Piper Sandler moved its target to $20, citing weaker ride volume trends despite bookings and EBITDA that were generally in line. KeyBanc kept a Sector Weight rating and pointed to solid bookings and EBITDA, though it noted those results were modestly below consensus.
Collectively, these adjustments underscore the competitive headwinds and uneven volume recovery that Lyft is navigating in the rideshare segment.
Contextual note - an independent analysis indicates Lyft may be trading below what some valuation approaches imply, which aligns with the upside suggested by the $23 target, though analyst opinions remain divided on the sustainability of growth drivers.