Lyft (LYFT) Stock Forecast & Price Target

Lyft is benefiting from a meaningful mix shift toward higher-value rides, with premium offerings and partnership-sourced demand driving better unit economics, as reflected in 2Q gross bookings growth of +23% Y/Y and adjusted EBITDA growth of +37%. Its expanding ecosystem across the US, Canada, and Europe—supported by Freenow, Gett, TBR, and partners like DoorDash, Chase, and United Airlines—broadens addressable demand and should support sustained scale as management targets $1B of adjusted EBITDA by 2027. The outlook is further strengthened by strong operating leverage, record active riders of 30.5 million, and growing AV optionality through Flexdrive and Waymo-related initiatives, even as structural competition remains a risk.

Lyft is facing a weaker fundamental outlook because its core ride growth is expected to slow as 2H-2027 volume assumptions are cut, while management’s update points to similar trends as 1H and only gradual North America acceleration. Although acquisitions such as FREENOW, TBR Global, Gett UK, and Lynk + Swift support diversification, the lack of disclosed impact, integration risk across three concurrent acquisitions, and gross bookings tracking below the company’s +15% target for 2024 to 2027 limit conviction. The company also remains disadvantaged by its smaller scale versus Uber, which sustains higher customer-acquisition costs, weaker network density, elevated insurance and S&M pressure, and exposure to volatile regulation and discretionary demand.