Lyft Stock Gets a Lift on Long-Term Financial Targets
Lyft stock is trading higher Friday after the ride-sharing firm provided 2027 financial targets at its first-ever Investor Day. Here's what you need to know.


Lyft (LYFT) stock is trading higher Friday after the ride-sharing company provided its 2027 financial targets at its first Investor Day.
In the presentation, Lyft said it expects a compound annual growth rate in gross bookings of approximately 15% between 2024 and 2027 and an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of approximately 4% on a full-year basis in 2027.
The company also anticipates a free cash flow conversion of more than 90% as a percentage of adjusted EBITDA annually each year between 2025 and 2027.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Over the last year, we've transformed our business and established a strong foundation for improving profitability and cash flow," said Erin Brewer, chief financial officer at Lyft, in a statement. "The financial targets we are announcing today reflect our expectations of healthy top-line growth and margin expansion as we deliver on our strategic priorities. I'm excited about Lyft's next chapter as we continue building a financially healthy and customer-obsessed Lyft."
The company also reaffirmed its outlook for the second quarter and full fiscal year, which it provided in its first-quarter earnings report last month.
"Lyft's customer-obsessed strategy is working," Lyft CEO David Risher said in the company's Investor Day press release. "Our execution keeps getting better, we're delivering industry-leading innovation, and we are working closely with partners to create great shared customer experiences."
Is Lyft stock a buy, sell or hold?
Wedbush analyst Scott Devitt attended Lyft's Investor Day presentation. "We are encouraged by the strength of the outlook, though we recognize that there is execution risk given the multi-year nature of the guidance and uncertainty related to macro and competitive dynamics over an extended time horizon," Devitt writes in a note to clients.
However, Devitt maintained a Neutral (Hold) rating on Lyft stock and recommended investors "allocate to Uber (UBER) for category exposure." However, the analyst did raise his price target on the industrial stock to $19 from $18.
Overall, most analysts are bullish toward Lyft. According to S&P Global Market Intelligence, the consensus analyst target price for LYFT stock is $19.51, representing implied upside of more than 20% to current levels. Meanwhile, the consensus recommendation is a Buy.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
‘Are You Better Off Than You Were 71 Days Ago?’ Cory Booker Marathon Senate Speech Highlights Tax Debate
Tax Policy A speech protesting Trump’s policies, including tax plans, breaks U.S. Senate records.
By Kelley R. Taylor Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published
-
Winning Strategies for Financial Advisers as Clients' Lives Evolve
How can the wealth management industry help make life transitions easier for the adviser and the client?
By David Conti, CPRC Published
-
How Advisers Can Establish Relationships With HNW Prospects
These strategies can help to build influence with high-net-worth individuals, who are often looking to an adviser for insight rather than solutions.
By Jeremy Green, CFP®, CTFA, CLU®, CEBS®, AEP®, EA, MSFS Published
-
When Your Car Is Fixed, But You've Still Got the Problem
This reader's experience with trying to get squealing brakes fixed under an extended warranty mirrors what others are experiencing these days.
By H. Dennis Beaver, Esq. Published
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published