Lyft Enjoys 'Continued Momentum': 3 Analysts Examine Q1 Earnings, Outlook Ahead Of Investor Day

Shares of Lyft Inc LYFT were climbing in early trading on Wednesday, after the company reported its first-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

• JPMorgan analyst Doug Anmuth reaffirmed a Neutral rating while lifting the price target from $13 to $18.
• Goldman Sachs analyst Eric Sheridan maintained a Neutral rating, while raising the price target from $16 to $19.
• Needham analyst Bernie McTernan reiterated a Hold rating on the stock.

Check out other analyst stock ratings.

JPMorgan: Lyft reported over 20% growth in rides and gross bookings, along with revenue growth of 28% and free cash flows (FCF) of $127 million, Anmuth said. "We believe Lyft is generating stronger results led by its customer obsession around both Drivers & Riders, along w/a healthy backdrop for driver supply," he added.

"While the Investor Day is still a month away, our recent conversations suggest expectations for a 3-year outlook," including mid-teens growth in gross bookings growth and incremental EBITDA margins of 5%-10%, the analyst stated.

Goldman Sachs: Lyft's first-quarter results indicated "continued momentum" in the company's operational turnaround, Sheridan said in a note. The company delivered a beat on gross bookings, revenues and adjusted EBITDA, "driven by strong rideshare demand, continued optimization of incentive spend and the impact of cost reduction measures," he added.

"Product innovation on driver pay, Women+ Connect (driver & rider safety) & driver supply improvements resulting in lower ETAs/cancellations and more predictable/stable pricing," the analyst further wrote. He raised the revenue and adjusted EBITDA estimates for 2024 from $5.36 billion to $5.6 billion and from $332 million to $343 million, respectively.

Needham: "LYFT continues to make encouraging improvements to its marketplace," with a focus on drivers leading to all-time high driver hours, which in turn resulted in "a better rider experience with shorter wait times and less surge pricing," McTernan wrote in a note. He added that the company has been leveraging its data to "better predict where demand is going to come from," helping drivers be more productive."

While these factors drove bookings higher by 21% year-on-year in the first quarter, this is likely to decelerate to mid-to-high teens growth for the rest of the year, the analyst stated. However, the higher-than-expected take rate in the first quarter pushes 2024 revenue estimates significantly higher, he further said.

LYFT Price Action: Shares of Lyft risen by 7.92% to $17.92 at the time of publication on Wednesday.

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