- Lyft is acquiring European app FREENOW for $197 million, aiming for completion in 2025.
- Wall Street sets Lyft's one-year average price target at $16.38, indicating significant potential growth.
- GuruFocus estimates suggest a fair value of $17.22, highlighting a promising upside of 58.13%.
Lyft (LYFT, Financial), the renowned transportation network company, is expanding its global footprint by acquiring FREENOW, a popular European transportation app from automotive giants BMW and Mercedes-Benz. This strategic acquisition, valued at $197 million, is projected to conclude in the latter half of 2025. Upon completion, FREENOW will maintain its current operations while gradually integrating new features designed to enhance the user experience.
Wall Street Analysts Forecast
In a comprehensive analysis by 36 market analysts, Lyft Inc (LYFT, Financial) has been given an average one-year price target of $16.38. This estimate spans a broad range, with a high of $26.00 and a low of $10.00, offering a substantial upside potential of 50.40% from the current trading price of $10.89. For a deeper dive into these projections, visit the Lyft Inc (LYFT) Forecast page on GuruFocus.
When it comes to analyst recommendations, Lyft maintains a consensus "Hold" status, with an average rating of 2.7 from 46 brokerage firms. This rating system scales from 1, indicating a "Strong Buy," to 5, which suggests a "Sell." Investors are advised to consider this stable position as part of their strategic decision-making.
GuruFocus Valuation Insights
Leveraging the proprietary valuation metrics from GuruFocus, Lyft Inc (LYFT, Financial) shows an estimated GF Value of $17.22 over the next year. This figure represents a noteworthy upside of 58.13% from the current price point of $10.89. The GF Value calculation is predicated on historical trading multiples, past business growth, and future performance projections. For more expansive data and insights, you can explore the Lyft Inc (LYFT) Summary page available on our platform.
Investors are encouraged to look at these metrics and forecasts to make informed decisions, considering both the potential rewards and inherent risks associated with Lyft's bold expansion strategy into the European market through FREENOW.
