- An analyst from Canaccord Genuity lowered the price target for Lyft (NASDAQ:LYFT) to $15 from $16 following its recent performance.
- Lyft reported mixed first-quarter results, with revenue of $1.65 billion surpassing expectations, but earnings per share (EPS) of 21 cents missing the consensus estimate of 31 cents.
- Despite the EPS miss, Lyft demonstrated strong operational growth, with Gross Bookings increasing 19% year-over-year to $4.90 billion and Active Riders growing 17% to 28.3 million.
Lyft is a prominent ride-sharing company operating in the United States and Canada. It provides transportation services by connecting passengers with drivers through its mobile app, competing directly with its larger rival, Uber. Following its recent performance, an analyst from Canaccord Genuity lowered their price target for Lyft to $15 from $16.
This price target adjustment comes after Lyft reported mixed first-quarter results. The company announced revenue of $1.65 billion, which is a 13.8% increase from the previous year and surpasses analyst expectations. However, its earnings per share (EPS) of 21 cents missed the consensus estimate of 31 cents, as highlighted by Zacks.
EPS is a company’s profit divided by its number of outstanding shares, showing how profitable it is on a per-share basis. A miss on this metric can concern investors. The CEO also revealed that severe winter storms had a negative impact on the company’s first-quarter performance, contributing to the mixed financial outcome.
Despite the earnings miss, Lyft shows strong growth in its core operations. Gross Bookings, which is the total value of all rides taken, grew 19% year-over-year to $4.90 billion. The company also expanded its user base, with Active Riders increasing by 17% to 28.3 million, showing rising demand for its services.
Looking forward, the company projects continued growth. For the second quarter, Lyft expects Gross Bookings to be between $5.30 billion and $5.43 billion. At the time the new price target was set, Lyft was trading at $14.37, meaning the $15 target still suggests a potential upside of approximately 4.4%.
