Lyft shares rise as analysts raise post-earnings price targets

Key Takeaways

• Lyft shares jumped more than 20% on Thursday as analysts raised their price targets after better-than-expected third-quarter results.
• The rideshare company posted a smaller net loss than expected and raised its full-year bookings projection above estimates.
• Analysts said Lyft’s agreements with multiple autonomous vehicle software makers could help Lyft compete with Uber and Tesla in the race to get AVs into more markets.

Lyft (LYFTShares rose 23% on Thursday as several analysts lifted their price targets on 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 Wednesdayhours later announce a trio of partnerships with autonomous vehicle (AV) software makers that analysts said could help Lyft catch rival Uber (UBER) and Tesla (TSLA) Through working on its own “robotaxi.”” attempt.

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

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

Analysts have said before that a lack of details in the unveiling of Tesla’s robotaxi Lyft could help Uber attracts partnerships from other AV manufacturers looking to increase their market share before Tesla’s AVs enter the picture.

Lyft shares recently hit their highest level since May, up about 20% for the year. Uber shares fell 1.5%.