Lyft (LYFT) Stock Forecast & Price Target

Lyft has achieved record growth in key performance metrics, with revenue, active riders, and total rides all reflecting double-digit increases, aligning closely with market expectations. Notably, active riders surged by 18% year-over-year, reaching 28.7 million, and total rides hit an all-time high of 249 million, marking a 15% year-over-year growth. Furthermore, the company's forward-looking commentary anticipates continued acceleration in gross bookings and expanded margins, particularly in Canada, where ride growth was 23% year-over-year, positioning Lyft well for future market expansion.

The analysis indicates a declining frequency of rides per active rider for Lyft, with a year-over-year decrease to 8.7 from 9.0, reflecting a potential reduction in user engagement and growth. Investor confidence appears to be waning due to concerns over reaching gross booking targets, with forecasts suggesting a compound annual growth rate of 12.6% between FY24 and FY27, which falls short of the company's 15% goal. Additionally, various downside risks, including increased competition from autonomous vehicle manufacturers, regulatory challenges, and high insurance costs, raise serious concerns about Lyft's market position and profitability moving forward.