RBC Capital has cut its price target on Lyft Inc. to $22.00 from $27.00, while leaving an Outperform rating in place. The change reflects what the firm described as a "very challenging" fourth-quarter for the ride-hailing company, where competition from Uber weighed on ride volumes even as bookings broadly met expectations.
RBC said Lyft missed ride volume projections by about 5% in the quarter, implying an organic slowdown to high single-digit growth in rides. That underperformance contrasts with the company’s bookings, which the investment firm described as strong. InvestingPro data referenced by analysts shows Lyft has posted 14.9% revenue growth over the trailing twelve months.
The firm noted Lyft achieved EBITDA at the high end of expectations in the fourth quarter, helped in part by a strategic tilt toward higher-value rides. However, RBC warned that the company’s first-quarter guidance signals some retracement in margin progress, even as management continues to reaffirm a 2027 margin goal of 4%.
RBC’s revised target is underpinned by a valuation approach of roughly 8x EV/2027E EBITDA, a multiple that embeds slower rides growth and a steeper margin improvement path to meet the 2027 target. The valuation shift aligns reasonably with InvestingPro’s Fair Value view, which indicates Lyft may be trading with roughly 30% upside against the then-current share price of $16.85.
InvestingPro figures in the report also show Lyft posted profitability over the last twelve months, with a diluted EPS of $0.36, although the stock trades at a relatively elevated P/E of 46.7 based on those trailing results.
RBC emphasized several potential positives alongside the risks. The firm pointed to accelerating North American bookings growth expected in 2026 and flagged the possibility that Lyft’s autonomous vehicle collaboration with Waymo could expand beyond Nashville if that market proves successful. At the same time, RBC maintained its Outperform rating largely on the basis of continued strong bookings growth.
Other brokerages have adjusted their views on Lyft amid the same set of concerns about ride volumes and growth. Morgan Stanley lowered its price target to $17, while Wells Fargo cut its target to $18 following the weaker-than-expected ride volume in the fourth quarter. Piper Sandler reduced its target to $20, citing similar pressures despite bookings and EBITDA that were in line with expectations.
Guggenheim also reduced its target to $22, noting a slowdown in ride growth but observing an acceleration in gross bookings. That firm characterized management’s actions as "intentional tradeoffs" to protect overall bookings in the face of competitive promotions. By contrast, KeyBanc held a Sector Weight rating and saw solid fourth-quarter bookings and EBITDA performance, though slightly below consensus.
Taken together, the string of price-target adjustments and varied analyst stances reflect differing interpretations of Lyft’s recent performance and its competitive positioning in the U.S. rideshare market. RBC’s move to a lower target but persistent Outperform rating captures that duality: the firm is dialing in a more conservative valuation while acknowledging ongoing strength in bookings and several potential upside vectors.
Note: All figures and analyst comments referenced are drawn from the information provided regarding recent broker actions and InvestingPro data.