Truist Securities has trimmed its price target for Lyft to $18.00 from $23.00, while sustaining a Hold recommendation on the ride-hailing operator's stock. Analysts' targets on the name span a wide range - from $15.50 to $32.00 - according to InvestingPro, and the shares are trading near $14.15.
The firm's move follows Lyft's fourth-quarter 2025 results, which Truist characterized as "inline" with expectations. In its assessment, Truist acknowledged several areas of constructive momentum in Lyft's marketplace: enhancements to the user experience, new product rollouts, acquisitions and an expanding slate of partnerships. Lyft's latest trailing twelve-month revenue stood at $6.32 billion, representing 9.16% year-over-year growth, a figure Truist incorporated into its view.
Even with those positives, Truist flagged operational headwinds that weakened the near-term outlook. The research note highlights a higher promotional environment that contributed to slower growth in ride volumes during the quarter. That dynamic, the firm said, weighed on underlying demand despite the platform-level improvements.
Guidance for the first quarter of 2026 added complexity to Truist's view. Lyft's outlook calls for gross bookings roughly inline with expectations, while adjusted EBITDA is projected to come in below consensus estimates. That mix - stable bookings but softer profitability metrics - underpins Truist's more cautious stance.
Liquidity and balance-sheet context also factored into the firm's analysis. Although Lyft carries more cash than debt overall, InvestingPro data indicate its short-term obligations exceed liquid assets, with a current ratio of 0.65. That metric suggests compressed near-term liquidity relative to short-term liabilities.
Truist maintained its Hold rating citing two principal reservations. First, the firm expressed limited visibility on Lyft's ability to deliver against its fiscal year 2027 targets for gross bookings, adjusted EBITDA margins and free cash flow, calling those targets "aggressive" at this stage. Second, Truist said it needs a clearer view of Lyft's autonomous vehicle (AV) strategy and the unit economics of that effort before it would consider a more favorable rating.
Other sell-side reactions to Lyft's fourth-quarter report have been mixed. Lyft disclosed gross bookings of $5.1 billion for the quarter - a 19% year-over-year increase that met market expectations. Normalized revenue was reported at $1.76 billion, a 14% increase after adjusting for a $168 million legal and regulatory reserve item.
Broker reactions varied. TD Cowen noted that rides grew 11% year over year in the quarter, a result short of its 17% estimate. Goldman Sachs pointed to record Active Riders and Gross Bookings in the quarter and kept a Buy rating in place while lowering its price target to $25.00. Evercore ISI trimmed its target to $21.00 from $30.00, citing a softer outlook despite what it described as an in-line quarter. Canaccord Genuity moved its target down to $16.00 and highlighted concerns about the expanding robotaxi market and the potential consequences for ride-hailing operators like Lyft. BMO Capital reiterated a Market Perform rating and set a $23.00 price target, noting that bookings were in line with expectations and that revenue slightly exceeded consensus after the reserve adjustment.
Taken together, the analyst moves illustrate a mix of cautious optimism and lingering concern among market participants. Some firms pointed to record demand metrics and revenue growth after adjustments, while others emphasized slower rides growth, promotional pressures and strategic unknowns such as Lyft's AV plans and longer-term margin conversion.
For investors and industry watchers, the juxtaposition of improving marketplace metrics and constrained near-term profitability underscores the degree to which Lyft's path to improved cash generation depends on both demand sustainability and clearer unit economics for new initiatives. Truist's action - a lower target but unchanged Hold - reflects that balance: operational progress is evident, yet material uncertainties remain regarding profitability, liquidity posture versus short-term obligations and strategic execution on high-profile initiatives.