- Lyft (LYFT, Financial) shares recently dropped over 10% following a downgrade by Bank of America.
- Analysts' average price target for Lyft suggests a potential upside of 32.27%.
- Lyft's current valuation is viewed as holding potential for growth, based on GF Value estimates.
Lyft Inc. (LYFT) witnessed a significant decline in its share price, plummeting over 10% after Bank of America adjusted its rating from Buy to Underperform. The downgrade was attributed to shrinking average transaction values and increased competition from industry heavyweights including Uber and Waymo. Alongside the downgrade, the bank also revised its EBITDA forecasts downward, setting a new price target of $10.50.
Wall Street Analysts' Expectations
According to insights from 37 analysts, the average one-year price target for Lyft Inc. (LYFT, Financial) stands at $17.13. This average includes estimates ranging from a high of $26.00 to a low of $10.00. With Lyft's current stock price at $12.95, this average target represents a potential upside of 32.27%. Investors can explore more comprehensive estimate data on the Lyft Inc (LYFT) Forecast page.
Brokerage Recommendations
The consensus among 47 brokerage firms gives Lyft Inc. (LYFT, Financial) an average recommendation of 2.6, placing it in the "Hold" category. This rating is based on a scale ranging from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Sell.
Evaluating Lyft's Intrinsic Value
According to GuruFocus, the estimated GF Value for Lyft Inc. (LYFT, Financial) over the next year is projected at $17.26. This estimate hints at a potential upside of 33.28% from Lyft's current trading price of $12.95. The GF Value represents GuruFocus's assessment of the stock’s fair trading value, calculated based on historical trading multiples, past business growth, and future performance projections. More information is available on the Lyft Inc (LYFT) Summary page.
