TD Cowen has reaffirmed its Buy recommendation for Lyft (NASDAQ:LYFT), assigning a price target of $32.00. This outlook is anchored on forecasts projecting strong revenue growth and accelerating gross bookings momentum. Currently, Lyft's shares trade at approximately $18.88, a valuation TD Cowen and InvestingPro analyses contend is below the company's potential. Analyst price targets span a range from $16 to $32, reflecting varied expectations within the market.
According to projections, Lyft’s revenue for the fourth quarter of 2025 is expected to rise by 13.7% year-over-year, reaching $1.76 billion. This forecast modestly exceeds consensus estimates and is driven by gross bookings anticipated to climb 19.3% year-over-year. A significant factor contributing to this acceleration is the inclusion of Freenow’s performance for the full quarter—Freenow being a recent Lyft acquisition completed in July 2025.
Financial data from InvestingPro highlights that Lyft’s trailing twelve months revenue totaled $6.27 billion, representing 14.9% growth. Analyst consensus anticipates a 12% revenue increase for the full fiscal year 2025. TD Cowen’s financial model predicts fourth quarter EBITDA of $146.9 million, marking a 30% growth from the previous year. This figure aligns closely with Lyft's own guidance range of $135 million to $155 million, as well as analyst consensus projections at roughly $147 million.
Investor attention is expected to center on rideshare activity trends as Lyft approaches the first quarter of 2026, alongside margin commentary following the renewal of insurance contracts in the fourth quarter. Lyft’s most recent reported EBITDA stands at $132.41 million, with the company’s overall financial health assessed by InvestingPro metrics as "GOOD."
Looking ahead to 2026, TD Cowen identifies several catalysts that could enhance Lyft's gross bookings further. These include the full-year impact of the Freenow and TBR Global Chauffeuring businesses, the latter anticipated to contribute around $90 million in revenue. Additionally, expansion possibilities include the deepening United Airlines partnership, benefits derived from California’s SB 371 legislation, and sustained growth within tier 2 metropolitan regions.
Lyft’s market capitalization currently stands at $7.55 billion. InvestingPro data confirms the company has achieved profitability over the past twelve months, with a diluted earnings per share of $0.36. Investors can access over ten supplemental insights about Lyft via InvestingPro’s extensive Pro Research Report, which covers more than 1,400 U.S. equities.
TD Cowen’s price target of $32 is supported by a discounted cash flow valuation extended to 2026, incorporating slight revisions in free cash flow assumptions in later years. Although Lyft trades at a price-to-earnings ratio of 50.77, InvestingPro suggests that its valuation is reasonable relative to expected near-term earnings growth. Detailed valuation metrics and 12 specialized ProTips concerning Lyft are available through InvestingPro’s research tools.
Recent commentary from other analysts includes Guggenheim’s upward revision of Lyft’s price target to $26, attributing this improvement to projected insurance-related gains in late 2026. RBC Capital has maintained an Outperform rating and a $27 price target, underscoring Lyft's fleet management advantages, particularly in relation to its collaboration with Waymo. Conversely, Wedbush downgraded Lyft to Underperform, citing risks associated with autonomous vehicle deployment due to Lyft's concentrated presence in the U.S. ridesharing market.
On the innovation front, Lyft has entered a strategic partnership with Uber Technologies and Baidu, a Chinese technology firm, to pilot driverless taxis in the United Kingdom slated for next year. This initiative represents a notable advancement in the development of robotaxi services globally, with plans to introduce Baidu’s autonomous vehicles in Germany and the UK, contingent upon receiving regulatory authorization.
These developments occur against a backdrop of positive sentiment from Evercore regarding the internet sector, forecasting premium earnings growth for top-tier internet companies through 2026.