Evercore ISI has lowered its price target on Lyft (NASDAQ:LYFT) to $21.00 from $30.00 and left its rating at "In Line," citing a softer-than-expected near-term outlook despite a quarter that largely matched expectations.
The Evercore revision aligns closely with InvestingPro's Fair Value assessment, and the firm noted the new valuation in the context of Lyft trading at $14.32. Analyst price targets on the stock now range from $15.50 to $32.00.
On a reported basis, Lyft delivered fourth-quarter gross bookings of $5.1 billion, representing 19% year-over-year growth and consistent with market forecasts. The company's normalized revenue for the quarter was $1.76 billion, up 14% year-over-year after an adjustment for a $168 million legal and regulatory reserve item. Those results are consistent with Lyft's trailing twelve-month revenue of $6.27 billion and an annual revenue growth rate of 14.9%.
Lyft reported EBITDA of $154 million for the quarter, equal to a 3.0% margin when expressed as a percentage of gross bookings. That margin outperformed consensus estimates by 5%. However, the firm's guidance for the first quarter missed Street expectations for both gross bookings and EBITDA.
InvestingPro data cited by analysts shows Lyft has been profitable on an earnings-per-share basis over the last twelve months, with EPS of $0.36. The analyst consensus expects EPS to expand materially to $1.26 in fiscal year 2025.
Underlying operational trends appeared stable, with organic gross bookings growth estimated at 13% year-over-year. That figure represents a one percentage point acceleration from the estimated 12% growth in the third quarter of 2025, indicating sequential improvement amid typical fourth-quarter seasonality.
Lyft sustained a gross profit margin of 35.26% and received a "GOOD" overall financial health score from InvestingPro. Evercore ISI additionally noted that Lyft achieved record-high EBITDA margins expressed as a percentage of gross bookings, with margins expanding 40 basis points year-over-year. Despite this, Evercore trimmed its price target on the basis of applying a lower valuation multiple given the softer outlook.
Market performance has been volatile; year-to-date returns are negative 13.01%. InvestingPro highlights that Lyft's balance sheet currently holds more cash than debt and that the stock is trading at a relatively low price-to-earnings ratio when measured against its near-term expected earnings growth.
Other analyst moves followed Lyft's fourth-quarter disclosure. The company announced record Active Riders and Gross Bookings for the quarter, with another reported booking figure of $5.07 billion that also matched Street expectations. At the same time, ride growth lagged some forecasts: Lyft reported rides increasing 11% year-over-year, short of TD Cowen's 17% estimate.
In response to the results and outlook:
- TD Cowen reduced its price target from $32 to $30 while maintaining a Buy rating.
- Goldman Sachs trimmed its target to $25 from $26 and maintained a Buy stance, noting Lyft's expectation for continued Gross Bookings growth in 2026.
- RBC Capital lowered its target to $22 from $27 and retained an Outperform rating, citing competitive pressures and describing the quarter as "very challenging."
- BMO Capital reiterated a Market Perform rating with a $23 target, referencing slightly above-consensus revenue after adjustments.
- Morgan Stanley cut its price target to $17, reflecting concerns about Lyft's growth prospects amid heightened competition.
These analyst updates reflect a range of views on Lyft's near-term growth trajectory and competitive environment while preserving the factual outcomes disclosed in the quarter.
Summary of key financial metrics and guidance points from Lyft's quarter:
- Fourth-quarter gross bookings: $5.1 billion (19% year-over-year)
- Alternative reported bookings figure: $5.07 billion (aligned with Street expectations)
- Normalized revenue: $1.76 billion (up 14% year-over-year after a $168 million reserve adjustment)
- Trailing twelve-month revenue: $6.27 billion
- Annual revenue growth rate: 14.9%
- Quarterly EBITDA: $154 million (3.0% of gross bookings; exceeded consensus by 5%)
- Last twelve months EPS: $0.36; FY2025 consensus EPS: $1.26
- Organic gross bookings growth estimate: 13% year-over-year (one point acceleration from prior quarter)
- Gross profit margin: 35.26%
- YTD stock return: -13.01%
These figures underpin the analyst reactions and valuation adjustments from multiple firms following the quarter and guidance release.