Lyft's (LYFT) growth should continue to be supported by partnerships, premium offerings, shared bikes and international markets following strong Q2 results, UBS Securities said Friday in a report.
UBS raised its estimates after management guided to healthy Q3 growth across rideshare, bikes and Freenow, a European ride-hailing and mobility platform. Gross bookings in Q2 rose 23% from a year earlier, while active riders reached a record 30.5 million, the report said.
Progress in Lyft's core US rideshare business remains important to monitor, and adjusted EBITDA margins will need to improve from 3.2% of gross bookings to reach the company's 4% margin target for 2027, the report said.
UBS raised its price target on Lyft stock $17 from $16 and maintained its neutral rating.
Price: $17.27, Change: $+0.97, Percent Change: +5.92%