Guggenheim Analyst Downgrades LYFT Stock Amid Cooling Demand
Senior Guggenheim analyst Michael Morris downgraded Lyft (LYFT) stock to 'Neutral' with a reduced price target of $16, citing cooling demand and the absence of near-term catalysts. The downgrade follows weaker-than-expected ride growth estimates for both 2026 and 2027 due to market saturation in North America. Morris also cut his valuation multiple on LYFT's estimated 2027 EV/OIBDA from 11x to 8x, reflecting concerns over the company’s near-term outlook. The analyst highlighted operational risks tied to Lyft's international expansion and capital allocation strategies, including uncertainty around its recent acquisition of FREENOW. While strategic partnerships with companies like Waymo and DoorDash (DASH) are seen as positive developments, autonomous vehicle initiatives remain too early-stage to significantly impact the stock price. Despite Guggenheim’s bearish stance, Wall Street's consensus rating for LYFT remains 'Moderate Buy' with a mean target of $19.83.
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