Morgan Stanley, BMO Lower Lyft Price Targets Amid Market Challenges

Morgan Stanley, BMO Capital Markets, and Oppenheimer have all set a $15 price target for Lyft, reflecting a broadly cautious but stable outlook amid macroeconomic pressures and sector volatility. Morgan Stanley and BMO Capital maintain neutral ratings, citing challenges from economic conditions and tariffs impacting the broader internet and e-commerce sectors, while BMO also points to Lyft's innovation and the strategic acquisition of European rideshare platform FREENOW as potential growth drivers. Oppenheimer, initiating coverage with an Outperform rating, emphasizes Lyft's undervaluation, strong fundamentals, and potential benefits from rising car ownership costs, further supported by positive consumer survey data. The FREENOW acquisition is expected to significantly expand Lyft’s addressable market and enhance its micromobility offerings, potentially driving additional growth. Despite recent declines in Lyft's share price, analysts note robust revenue growth and operational efficiency improvements, including cost reductions and increased ride frequency. Overall, while consensus remains cautious due to external economic risks, analysts see meaningful upside for Lyft if it can execute on its growth and cost strategies.