TD Cowen upgrades this ride-sharing stock, calls it 'best smidcap idea' of 2025
A number of catalysts could lead to more gains for Lyft , according to TD Cowen. Analyst John Blackledge upgraded the ride-sharing stock to buy from hold, naming it his "best smidcap idea" for 2025. The analyst also upped his price target by $5 to $21, which implies more than 40% upside from Monday's close. "We see multiple growth levers ahead amid strong execution from the current [management] team, who has refocused the company on 'customer obsession' and has rolled out multiple innovations to improve experience for riders & drivers (most recently Price Lock)," Blackledge wrote on Tuesday. Shares were up more than 5% in the premarket following the call. The stock has also gained nearly 16% this year and more than 22% in the past three months, outpacing the S & P 500 in both timeframes. LYFT 3M mountain LYFT, 3-month Blackledge believes that Lyft's increasing focus on "tier 2" cities such as Charlotte and Indianapolis and the opportunity provided by the company's acquisition of European taxi app FreeNow should help spur gains ahead. In addition, he cited the company's product innovation – like its Price Lock feature, which allows customers to secure a consistent daily price for specific routes – and its partnerships with other companies such as DoorDash as catalysts for growth. Beyond those drivers, Blackledge believes investors underappreciate the opportunity that autonomous vehicles provide for Lyft, as the company is on pace to launch AVs this summer in Atlanta through its May Mobility partnership. It's also set to launch Mobileye-powered AVs in Dallas next year through its partnership with Marubeni. "We think autonomous vehicles (AVs) should expand rideshare [total addressable market] over the long-term, helping to drive new use cases such as serving riders who would prefer a driver-less trip," the analyst wrote. "Lyft is well positioned with FlexDrive (~14K cars on balance sheet) as AVs scale and require fleet [management] partners." To be sure, most analysts are on the sidelines when it comes to Lyft. Of the 48 covering the stock, 32 rate it as neutral.
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