Lyft (LYFT) posted a "solid" Q2 as rides and gross bookings grew across its US rideshare, Freenow and bikeshare businesses, supporting higher estimates and a more constructive outlook, RBC Capital Markets said in a report emailed Friday.
Gross bookings rose 23% from a year earlier to $5.5 billion, while rides increased 12% to 262 million. The firm said growth was helped by Freenow, premium ride options and record airport activity during the 2026 FIFA World Cup.
Accelerating organic ride growth in 2H and stronger-than-average growth in San Francisco, where rides increased about 20%. That performance was viewed as "encouraging" for the argument that autonomous vehicles could expand the overall ride-hailing market rather than simply displace existing demand, according to the report.
Lyft is also shifting toward higher-value services, including "premium modes" and partner rides, while continuing work on a "unified customer facing" app for 2027. The firm raised the company's 2026 and 2027 bookings, revenue and adjusted earnings before interest, taxes, depreciation, and amortization estimates, according to the report.
RBC has an outperform rating on Lyft and increased the price target to $20 from $18.
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