Why Is Uber Rival Stock Lyft Shooting Higher Wednesday?

Lyft, Inc LYFT stock climbed over 32% Wednesday, a day after it reported its fourth-quarter financial results.

The Uber Technologies, Inc UBER rival clocked quarterly sales of $1.225 billion, up by over 4% year-on-year, beating the consensus of $1.220 billion. 

The gross bookings of $3.7 billion surged 17% year-over-year. Rides grew by 26% Y/Y to 191 million in Q4. The EPS of $0.18 beat the consensus of $0.08.

For the full year of 2024, Lyft expects rides growth in the mid-teens year-over-year. It expects to generate positive free cash flow in full-year 2024 for the first time.

MoffettNathanson analyst Michael Morton upgraded Lyft from Sell to Neutral.

Last week, Uber clocked fourth-quarter FY23 revenue growth of 15% year-on-year to $9.94 billion, above the consensus of $9.76 billion.

Uber's GAAP EPS of $0.29 beat the consensus of $0.17. Gross Bookings climbed 22% year-over-year to $37.58 billion, with Mobility Gross Bookings of $19.29 billion, up 29% year-over-year. Rides grew 24% year-over-year to 2.60 billion.

Lyft Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Lyft have an average 1-year price target of $14.56, representing an expected downside of 10.01%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analysts have bearish recommendations on Lyft, while No analysts have bullish ratings. The street high price target from RBC Capital is $17.0, while the street low from TD Cowen is $12.0.

Price Action: LYFT shares are trading higher by 32% at $16.01 on the last check Wednesday.

Lyft App. Photo via Shutterstock