Lyft Stock Surges as Analysts Lift Price Targets After Earnings

Lyft (LYFT) shares jumped 23% Thursday as several analysts lifted their price targets for the ridesharing company’s stock after its third-quarter results and fourth-quarter outlook came in better than expected.

Lyft reported a smaller net loss than expected after the bell Wednesday, hours after announcing a trio of partnerships with autonomous vehicle (AV) software makers that analysts said could help Lyft catch rideshare rival Uber (UBER) and Tesla (TSLA) by working on its own “robotaxi” effort.

Analysts from Deutsche Bank, Wedbush, and JPMorgan all raised their price targets for Lyft stock following Wednesday’s results. Deutsche Bank said Lyft is seeing “strong demand trends” in its third-quarter results that extended into its better-than-expected fourth-quarter projections.

JPMorgan analysts said Lyft’s new partnerships “enhance Lyft’s AV positioning amidst ongoing announcements from Uber,” which has announced agreements in recent months with AV makers like Alphabet’s (GOOGL) Waymo and General Motors’ (GM) Cruise.

Analysts have said previously that a lack of details at Tesla’s robotaxi unveiling could help Lyft and Uber attract partnerships from other AV makers looking to grow market share before Tesla’s AVs enter the picture.

Lyft shares were recently at their highest levels since May, up some 20% for the year. Uber’s shares were off 1.5%.