BofA Still Sees Trouble on the Road for Lyft (LYFT)

On June 4, Bank of America Securities analyst Mike McGovern reiterated a Sell rating on Lyft Inc. (NASDAQ:LYFT), with an unchanged price target of $12. While the company has reported some encouraging operating metrics, including record highs in active riders and gross bookings, McGovern remains cautious about its longer-term outlook.

His concern centers primarily around rising competitive pressure, especially from emerging autonomous vehicle (AV) platforms such as Waymo and Tesla. These players are expanding their reach and could begin to erode Lyft’s market share as they scale up.

A busy metropolis street filled with commuters using the company’s mass transit ridesharing services.

Although Lyft has made some progress with its AV program and fleet management, it still lags behind key competitors in creating strong partnerships. McGovern views this gap as a weakness, particularly in an environment where technology-driven differentiation is becoming increasingly important.

While the company has made some operational improvements and benefitted from product innovations, the analyst expects external threats like autonomous vehicle (AV) disruption to overshadow near-term gains. These concerns support his Sell rating and reflect a more cautious stance on the company’s competitive positioning.

Lyft Inc. is a transportation technology company that operates a peer-to-peer ridesharing marketplace in the United States and Canada, connecting drivers with riders through its mobile platform. In addition to ridesharing, Lyft offers bike and scooter rentals, car rentals for drivers, and access to autonomous vehicle services.

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