RBC Capital Reiterated an Outperform Rating on Lyft (LYFT), Assigning a $21 PT

On June 5, RBC Capital analysts maintained an Outperform rating on Lyft, Inc. (NASDAQ:LYFT) with a price target of $21. The analysts mentioned the current rationality in the ride-sharing space, observing identical pricing and pick-up windows for Lyft and Uber, its market rival. Lyft’s revenue has demonstrated solid growth over the last year, coming in at 27%.

A ridesharing passenger and driver in a car, looking out the window in anticipation of their destination.

RBC reported that Lyft, Inc. (NASDAQ:LYFT) is a sector winner year-to-date, ranking fifth overall with an 18% increase, compared to the 1% boost in the Nasdaq. According to the analysts, this performance was driven by Lyft’s limited tariff exposure and GenAI concerns, combined with strong execution.

Another positive development commended by RBC was Lyft, Inc. (NASDAQ:LYFT)’s autonomous vehicle launch with May Mobility, which is on the horizon. However, the soon-to-be Tesla launch is a potential competitive risk, though analysts commented that a stock selloff related to Tesla was a buying opportunity.

The analysts also highlighted Lyft’s promising valuation at 7.3x its forecasted 2026 EBITDA. This valuation, paired with the company’s tactical plans, was a factor that contributed to RBC’s Outperform rating.

Lyft, Inc. (NASDAQ:LYFT) is a leading peer-to-peer transportation company operating across the United States and Canada, offering ridesharing, shared bikes/scooters, and Express Drive rentals.

While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.