Goldman Sachs lowered its price target on Lyft (NASDAQ:LYFT) to $25.00 from $26.00 but kept a Buy rating following the ride-hailer’s fourth-quarter 2025 results. That revised target aligns with InvestingPro's Fair Value assessment, which places Lyft trading below its Fair Value and aggregates analyst targets that span from $15.50 to $32.00.
In its Q4 disclosure, Lyft said it recorded all-time highs for Active Riders and Gross Bookings, and reiterated its expectation that Gross Bookings growth will accelerate in 2026. The company also pointed to early momentum from partnerships and acquisitions, and reiterated confidence in a hybrid autonomous vehicle - AV - strategy. Lyft characterized the FREENOW acquisition as potentially transformational when it comes to securing AV deals in the European Union.
Financially, Lyft reported compounding results across several metrics. The company noted 14.9% revenue growth over the last twelve months and reported that it has generated $6.27 billion in revenue over that period. InvestingPro data cited in company commentary showed a 15% free cash flow yield and confirmed active share repurchases by management, with leadership emphasizing ongoing execution toward compounding free cash flow at a meaningful rate and a commitment to returning capital to shareholders.
Market reaction and analyst responses were mixed as several firms adjusted their valuations in light of the quarter. The Q4 bookings figure of $5.07 billion matched expectations, and revenue modestly beat consensus after accounting for legal and regulatory reserves. Still, ride-volume softness prompted multiple price-target reductions:
- RBC Capital cut its target to $22 from $27, citing competitive pressure from Uber.
- Wells Fargo lowered its target to $18 from $26, citing underperformance in ride volumes in the fourth quarter.
- Morgan Stanley moved its target to $17 from $22.50 and maintained an Equalweight rating.
- Piper Sandler adjusted its target to $20 from $28, pointing to weaker ride volumes attributed to late-quarter promotional activity.
- BMO Capital kept a Market Perform rating and a $23 price target, acknowledging the recent earnings release.
Goldman Sachs nevertheless stated continued confidence in Lyft’s ability to achieve the three-year target of mid-teens percentage Gross Bookings growth that the company outlined at its 2024 Investor Day. That conviction persists despite near-term investor concerns highlighted in the market: digital consumer health, competitive shifts in the rideshare landscape, and the potential effects of AVs on mobility networks.
Investors should also note the stock's recent volatility: Lyft has a reported beta of 1.9, a year-to-date decline of 13%, and a 12-month return of 17.1%. For those seeking deeper analysis, InvestingPro is cited as offering additional ProTips and research reports on Lyft's financials and growth prospects.
This reporting preserves the company-provided figures and the specific analyst reactions disclosed around the Q4 results. While several analysts trimmed their valuations in response to ride-volume dynamics and competitive concerns, management emphasized record usage metrics, expected Gross Bookings acceleration, progress on strategic acquisitions like FREENOW, and a disciplined cash-return posture backed by a high free cash flow yield and share buybacks.