Lyft (LYFT) Stock Forecast & Price Target

Lyft is anticipated to approach $1 billion in EBITDA by 2027, surpassing street expectations of $830 million, which could indicate attractive valuation for investors. The recent partnership with Waymo enhances Lyft's credibility within the rideshare market and breaks the competitive constraints perceived in relation to Uber. Furthermore, the company's track record of exceeding expectations and developing a healthier free cash flow profile suggests robust fundamentals that could lead to increased interest from long-term investors.

Lyft's projected gross bookings for 2027 are falling significantly short, with consensus estimates approximately $1.5 billion below the company's target of around $25 billion, indicating a potential disconnect between expectations and actual performance. Furthermore, Lyft's anticipated EBITDA of $1 billion is also under scrutiny, as consensus estimates are nearly $175 million short of this figure. This persistent gap between investor expectations and Lyft's performance has led to increased skepticism among both investors and analysts, particularly as the company has not updated its 3-year targets for over a year.