Rosenblatt cuts Lyft stock price target on 2027 margin outlook

Rosenblatt lowered Lyft Inc.'s stock price target to $18 from $19, maintaining a Neutral rating on the company. The firm highlighted that Lyft's third-quarter results met expectations in bookings and exceeded in profitability, with gross bookings growing 17.5% year-over-year and adjusted EBITDA margin expanding 70 basis points to 3.6% of bookings. However, the key question for 2027 revolves around whether ride growth will continue as acquisitions and insurance leverage slow, leaving less capacity to fund incentives.

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