BofA Raises LYFT Price Target to $21, Emphasizing Growth in Autonomous Vehicles

Bank of America (BofA) has raised its price target for Lyft (LYFT), signaling strong growth potential for the ride-hailing company. Analyst Mike McGovern, who is highly rated by TipRanks, increased his price target from $19 to $21, reaffirming his “Buy” rating on the stock. This new target suggests a 46% upside from Lyft’s current trading level, boosting investor optimism.

Lyft’s Recent Performance and Stock Movement

Lyft’s recent quarterly and full-year results have been met with mixed reactions. While the company’s earnings report led to an 11% drop in stock price during after-hours trading, its year-to-date performance remains positive, with a notable 11.55% gain so far in 2025. Despite the fluctuations in stock price, analysts like McGovern continue to have confidence in Lyft’s long-term prospects.

Strategic Partnerships Fueling Growth

One of the key factors driving McGovern’s revised price target is Lyft’s partnership with Mobileye, a leader in autonomous driving technology. This collaboration is expected to enhance Lyft’s autonomous vehicle capabilities by 2026, potentially providing the company with a competitive edge in an increasingly tech-driven market. McGovern views this as a significant opportunity for Lyft to solidify its position in the ride-hailing industry, particularly as the autonomous vehicle sector gains momentum.

Uber’s Performance Adds to Positive Outlook

In addition to Lyft’s internal strategies, McGovern points to positive earnings reports from Uber, Lyft’s main competitor, as further validation of the industry’s growth potential. Uber reported impressive year-over-year growth, including an 18% increase in gross bookings and a 20% rise in revenues. The company also highlighted strong prospects in autonomous vehicle technology, which bodes well for the entire sector, including Lyft.

The Growing Autonomous Vehicle Market

The autonomous vehicle market remains one of the most promising areas for growth in the transportation industry. McGovern believes that this market presents a balanced risk-reward scenario for investors and sees Lyft’s position within it as a major factor in the company’s future success. As autonomous vehicles become a more integral part of the ride-hailing landscape, Lyft’s ability to capitalize on this technology could significantly boost its long-term growth.

Is LYFT Stock a Buy or Sell?

Looking at Wall Street’s consensus, LYFT stock currently holds a Moderate Buy rating. In the past three months, the stock has received five “Buy” ratings and 14 “Hold” ratings. The average price target for Lyft is $18.31, reflecting a potential upside of 27.24% from its current level. While the stock has faced volatility, the positive outlook for autonomous vehicle technology and Lyft’s strategic positioning in this area make it an attractive option for long-term investors.

Key Highlights:

• Price Target Increase: Bank of America raised Lyft’s price target to $21, suggesting a 46% upside from its current level.
• Mobileye Partnership: Lyft’s collaboration with Mobileye will enhance its autonomous vehicle operations, positioning it for growth in the evolving market.
• Uber’s Strong Performance: Positive earnings from Uber suggest a strong future for the ride-hailing industry, including Lyft.
• Autonomous Vehicle Growth: McGovern sees the autonomous vehicle market as a key driver for Lyft’s future success.
• Stock Rating: LYFT stock holds a Moderate Buy consensus rating with a potential 27.24% upside based on the average price target.

Bank of America’s revised price target for Lyft reflects growing optimism about the company’s long-term prospects, especially in the autonomous vehicle sector. Despite short-term stock fluctuations, Lyft’s strategic partnerships and positioning in a rapidly evolving market continue to make it an appealing choice for long-term investors. With the potential for significant growth in autonomous vehicles, investors may want to consider Lyft as a part of their portfolio.

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