Lyft Stock: Buy, Sell, or Hold?

Core Viewpoint - The analyst community believes Lyft has strong upside potential, with an average price target of $18.69 per share, indicating nearly 40% upside from current trading levels [1] Business Trends - Lyft is the second-largest player in the U.S. ride-sharing market, benefiting from ongoing adoption trends [3] - In Q3 2024, Lyft reported 24.4 million active riders, a 9% year-over-year increase, and set a record with 217 million rides, up 16% [4][6] Financial Performance - Under new CEO David Risher, Lyft has become free cash flow positive for the first time in its history, indicating improved financial health [6] - Lyft's stock is valued over 60% cheaper than Uber, despite faster revenue growth, presenting a rare combination of higher growth and lower valuation [7] Future Potential - Lyft aims to develop a digital advertising business projected to reach $400 million by 2027, which could significantly enhance free cash flow [9][10] - Management targets free cash flow of $900 million in 2027, representing a 40% increase from trailing-12-month figures as of Q3 [11]