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Lyft (LYFT) Shares Climbed, What Is Behind The Move?

Simply Wall St · 2d ago

Lyft stock: what Europe’s app rollout means for investors

Lyft (LYFT) is switching on a wider European presence, letting riders use the same app and payment details across major cities, from Barcelona and Hamburg to London, Paris, Rome, and Berlin.

For investors, this European rollout comes at a time when Lyft’s recent momentum is mixed. The share price is US$16.13 after a 1-day share price return of 3.4% and a 7-day share price return of 6.1%. However, the year-to-date share price return is down 18.5% and the 1-year total shareholder return has declined 18.2%. At the same time, the 3-year total shareholder return is up 51.3% while the 5-year total shareholder return is down 68.1%. This points to a stock that has swung sharply over time as the market reassesses both growth potential and risk.

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Lyft’s fresh European push and a share price of US$16.13 leave a simple tension. Is the bigger rerating still in front of you, or did most of the repricing already happen earlier in the recovery?

Most Popular Narrative: 17% Undervalued

Analysts following Lyft see fair value at $19.33, above the last close at $16.13. This puts investor attention squarely on the drivers behind that gap.

The ongoing rollout and consumer adoption of autonomous vehicles backed by new partnerships with tech leaders like Baidu and operational capabilities in both the U.S. and Europe are expected to significantly expand Lyft's total addressable market (TAM), lower labor costs, and increase long-term gross margins and earnings.

See why 60 investors see Lyft as 17% undervalued.

Result: Fair Value of $19.33 (UNDERVALUED)

Still, legal action around rider safety, along with the heavy upfront cost and regulatory uncertainty of autonomous vehicles, could both derail the Lyft narrative investors are leaning on.

Find out about the key risks to this Lyft narrative.

Next Steps

Mixed signals around Lyft can feel confusing, so treat this as your cue to move quickly, review both sides of the story, and weigh the balance of 3 key rewards and 2 important warning signs.

Looking for more Lyft investment ideas beyond Europe?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.