Analysts cut Lyft price targets amid robotaxi fears and growth slowdown
Despite maintaining positive or neutral ratings, firms warn of a difficult path to 2027 profitability targets as the ride-hailing giant navigates a disruptive transition to self-driving technology.
Analysts from Canaccord Genuity and RBC Capital Markets have lowered their price targets for Lyft Inc following the company’s first-quarter earnings report, reflecting growing caution around the ride-hailing giant’s long-term trajectory. The downgrades highlight mounting concerns over the structural impact of autonomous vehicle technology and a recent deceleration in core business growth.
Canaccord Genuity reduced its price target for Lyft to $15 from $16, while maintaining a Hold rating. The firm cited the “structural threat” posed by the emerging robotaxi revolution and described the company’s transition toward autonomous technology as having a “disruptive nature.” Analysts at Canaccord noted that Lyft faces a “Herculean climb” to achieve its profitability targets for 2027, a challenge exacerbated by the uncertainties inherent in shifting its business model.
RBC Capital Markets also trimmed its valuation, lowering its price target to $18 from $22, though it retained an Outperform rating on the stock. The firm observed that Lyft’s first-quarter performance was not its strongest, with critics likely to focus on slowing organic growth and rider promotions moving in an unfavourable direction. Despite these headwinds, RBC acknowledged that Lyft remains a double-digit grower with a viable path toward margin expansion.
Lyft operates as a multimodal transportation network across the United States and Canada, providing access to various transport options via its platform and mobile applications. The company’s strategic pivot toward robotaxis has placed it at the centre of industry debates regarding the future of ride-hailing. Industry analysts view autonomous vehicle technology as a potential disruptor to current business models, creating significant scrutiny for traditional operators attempting to integrate self-driving fleets.
The mixed analyst sentiment comes as broader market interest shifts toward sectors with clearer near-term upside. Yahoo Finance recently included Lyft among its “10 Best Stocks Under $15 to Buy Right Now,” yet the publication noted that certain artificial intelligence stocks may offer greater upside potential with less downside risk. This comparison underscores the current preference for high-growth AI plays over legacy transportation technology stocks facing operational and competitive headwinds.
