Lyft Inc. shares fell 3.02% and hit a 20-day low amid broader market gains, with the Nasdaq-100 up 0.32% and the S&P 500 up 0.04%.
Despite achieving profitability and positive cash flow, Lyft's stock is under pressure due to regulatory risks and market competition. The recent approval of a ride-hailing law in Israel is expected to enhance competition, which could impact Lyft's market share. Additionally, Lyft's focus on mobility services rather than diversification may limit its growth potential in the face of increasing operational challenges.
The implications of these developments suggest that while Lyft is on a path to improved profitability, external factors such as regulatory changes and competitive pressures could hinder its stock performance in the near term.
Wall Street analysts forecast LYFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LYFT is 24.06 USD with a low forecast of 16.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
Wall Street analysts forecast LYFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LYFT is 24.06 USD with a low forecast of 16.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
20 Hold
2 Sell
Hold
Current: 17.200
Low
16.00
Averages
24.06
High
32.00
Current: 17.200
Low
16.00
Averages
24.06
High
32.00
Cantor Fitzgerald
Neutral
downgrade
$25 -> $21
2026-01-08
Reason
Cantor Fitzgerald
Price Target
$25 -> $21
AI Analysis
2026-01-08
downgrade
Neutral
Reason
Cantor Fitzgerald lowered the firm's price target on Lyft to $21 from $25 and keeps a Neutral rating on the shares. Despite lingering macro concerns, the outlook for Global Internet stocks into 2026 is increasingly positive as AI enters a "Synergy" phase that should drive accelerating revenue growth, improved value capture, and clearer long-term returns on capex, the analyst tells investors in a research note. With valuations still about 20% below medium-term ranges despite 2025 outperformance, the group is positioned to outperform in 2026 amid positive estimate revisions and improving sentiment, Cantor says.
Wedbush
Neutral -> Underperform
downgrade
$20 -> $16
2025-12-19
Reason
Wedbush
Price Target
$20 -> $16
2025-12-19
downgrade
Neutral -> Underperform
Reason
Wedbush downgraded Lyft to Underperform from Neutral with a price target of $16, down from $20.
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Wedbush
NULL -> Underperform
downgrade
$19.34
2025-12-19
Reason
Wedbush
Price Target
$19.34
2025-12-19
downgrade
NULL -> Underperform
Reason
Lyft falls 3% to $19.34 after Wedbush downgrades to Underperform
Wedbush
Scott Devitt
Neutral -> Underperform
downgrade
$20 -> $16
2025-12-19
Reason
Wedbush
Scott Devitt
Price Target
$20 -> $16
2025-12-19
downgrade
Neutral -> Underperform
Reason
As previously reported, Wedbush analyst Scott Devitt downgraded Lyft to Underperform from Neutral with a price target of $16, down from $20. The firm believes Lyft is most at risk to the impact of autonomous vehicle disruption given the company's exposure to the U.S. ridesharing market and undiversified offering mix. Furthermore, Wedbush thinks the market is underestimating the negative terminal value impact that AVs may have on Lyft's discounted cash flow value.
About LYFT
Lyft, Inc. is a global mobility platform offering rideshare, taxis, private hire vehicles, car sharing, bikes, and scooters across North America and Europe. It operates across 11 countries and in nearly 1,000 cities, and Lyft Urban Solutions supports bike sharing in 16 countries and more than 86 cities. Its Lyft mobile application (the Lyft App) connects riders with drivers for on-demand ride services and supports a variety of other multimodal mobility solutions. Its offerings on the Lyft App include an expanded set of transportation modes in select cities, such as access to a network of shared bikes and scooters (Light Vehicles) for shorter rides and first-mile and last-mile legs of multimodal trips. FREENOW by Lyft is the European taxi app featuring broad multi-mobility options. Through FREENOW, passengers can access various mobility services within a single app, including taxis, private hire vehicles, car sharing, car rental, e-scooters, e-bikes, e-mopeds, and public transport.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
