DA Davidson reduced its price target on Lyft (LYFT) to $19.00 from $22.00 and kept a Neutral rating on the ride-hailing company. At the time of the note, Lyft was trading around $14.10, giving the analyst consensus a potential upside of approximately 42% from prevailing prices.
The firm said the move follows what it characterized as "mixed" results for fourth-quarter 2025 and guidance for the first quarter of 2026. While the brokerage left its overall 2026 revenue projections effectively unchanged, it reallocated expectations within Lyft's business mix: forecasts for the Rides segment were reduced while projections for the GB - Goods & Bikes - segment were increased.
DA Davidson trimmed its 2026 adjusted EBITDA estimate by about 2%. The note linked the reduction to the "potential for elevated AV investment risk," referring to Lyft's expenditures related to autonomous vehicle technology. The research team calculated that a $19 price target corresponds to roughly a 10 times 2026 EV/EBITDA multiple.
The $19 target sits below InvestingPro's Fair Value estimate cited in the note, which the research referenced as indicating Lyft may be undervalued despite the company trading at a relatively high current EV/EBITDA of 45.79.
Several other brokerages adjusted their Lyft targets after the fourth-quarter results:
- Evercore ISI highlighted fourth-quarter gross bookings of $5.1 billion, a 19% year-over-year increase, and normalized revenue of $1.76 billion, up 14% year-over-year. Despite results that aligned with market expectations, Evercore lowered its price target to $21, citing a softer-than-expected outlook.
- Truist Securities trimmed its target to $18, describing the quarter as "inline" while acknowledging improvements in user experience and new product initiatives.
- Goldman Sachs reduced its target to $25 but maintained a Buy rating, noting record figures for Active Riders and Gross Bookings.
- TD Cowen set a new target at $30, calling out solid gross bookings and EBITDA performance, while also pointing out that rides growth missed expectations.
- Canaccord Genuity lowered its target to $16 and raised concerns about the potential impact of an expanding robotaxi market on Lyft's business.
Taken together, these revisions reflect a cautious posture among analysts despite multiple positive operating metrics in the reported quarter such as gains in gross bookings and active rider counts. The range of new targets - from $16 up to $30 - underscores differing views on growth sustainability, margin outlook, and longer-term competitive dynamics, including autonomous vehicle developments.
Investors and market observers will likely weigh the mixed quarter, the re-weighted segment outlook, and the modest EBITDA cut against the divergent analyst targets as they assess Lyft's valuation and strategic priorities. The note from DA Davidson places particular emphasis on the potential downside from higher-than-expected investments in AV technology, while other firms emphasized record engagement metrics or product progress when explaining their own adjustments.