Needham analyst Bernie McTernan has maintained their neutral stance on LYFT stock, giving a Hold rating today.
Bernie McTernan has given his Hold rating due to a combination of factors surrounding Lyft’s recent acquisition of FREENOW. This acquisition allows Lyft to expand its total addressable market in Europe, which is strategically advantageous as autonomous vehicle technology advances. However, despite FREENOW’s current profitability in terms of adjusted EBITDA, there are uncertainties regarding Lyft’s willingness to invest further in this expanded market and how such investments might affect their long-term financial targets, specifically their 2027 bookings goal of approximately $25 billion.
Given these considerations, McTernan’s Hold rating reflects a cautious stance, acknowledging the potential benefits of the acquisition while also recognizing the risks associated with further investment and market expansion. The decision to rate the stock as Hold suggests that while there are positive aspects to the acquisition, there are also significant uncertainties that could impact Lyft’s future performance.