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Lyft Stock Analysis: Bernstein’s Strategic Insight at $14

Lyft Stock Analysis: Bernstein's Strategic Insight at $14

Bernstein maintains price target for Lyft at $14, sites pending Q4 update

On Monday, it was reiterated by Bernstein that it is keeping its Market Perform rating on Lyft, with a steady price target of $14.00. Lyft, traded under Nasdaq, is at a crucial juncture according to the firm’s analysis, poised for a pivotal update in the upcoming fourth quarter. The newly appointed management team of Lyft is expected to reveal its long-term goals for the first time, including financial targets that could significantly influence the Lyft stock outlook.

Understanding the Competitive Landscape

Lyft’s competitive standing, particularly in comparison with Uber, is a topic of much discussion. Despite facing challenges from Uber’s scale and platform advantages, there are unique opportunities for Lyft to narrow the valuation gap. Setting realistic goals and consistently surpassing them has been a strategy that benefited Uber, and could very well be Lyft’s ticket to enhancing investor sentiment.

The Gross Margin Debate

Bernstein raises a cautionary note about the general market’s expectations around Lyft’s gross margin. Suggesting that these might be overestimated by a substantial 400 basis points, the implications for future EBITDA revisions cannot be overlooked. The firm points to insurance costs as a recurring challenge for Lyft, emphasizing the limits of reducing fixed costs as a compensation strategy.

Strategy and Growth Projections

Lyft’s strategies for the years 2023 to 2026 are anticipated with keen interest, with Bernstein predicting a low-teens compound annual growth rate (CAGR) in Gross Bookings. This forecast slightly exceeds the consensus, hinting at potential growth reaching the mid-teens. Moreover, Lyft’s recent advancements in volume and supply, coupled with the dynamic interplay between its core service and new product offerings, remain focal points of interest for investors.

Profitability and Insurance Costs

On profitability, Bernstein offers a more conservative viewpoint, projecting a mid-single-digit incremental adjusted EBITDA margin as a percentage of Gross Bookings over three years. This is notably more conservative compared to the Street’s 6.5% expectation. The analysis then narrows down to insurance costs per trip and explores strategies for Lyft to mitigate these costs effectively. Here, adjusting prices and moderating driver incentives emerge as tangible approaches for Lyft.


Lyft’s journey ahead is filled with both challenges and opportunities. The looming fourth quarter update presents a milestone moment for Lyft to delineate its long-term aspirations and to potentially redefine its financial trajectory. With Bernstein maintaining a solid price target for Lyft stock amidst these considerations, all eyes are on Lyft’s next moves on the Nasdaq index.

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Ethan Martinez

Ethan Martinez

Ethan Martinez stands as a beacon of insight in the world of business, bringing to the table an impressive track record that spans over a decade. With a keen eye for market trends and a deep understanding of the complexities of global commerce, Ethan has carved out a reputation for delivering in-depth analyses and pioneering strategies that have guided numerous enterprises towards sustainable growth. His expertise encompasses a broad spectrum of business disciplines, from finance and mergers to startups and innovation management, making him a sought-after commentator and advisor. Through his contributions to Gitzette's Business News section, Ethan continues to enrich the business community with his valuable perspectives and actionable guidance.