Wedbush Warns of Lyft’s (LYFT) Vulnerability to AV Disruption, Overestimated Long-Term Valuation

Core Viewpoint - Lyft Inc. is facing significant challenges due to its exclusive focus on the US ridesharing market and is considered vulnerable to autonomous vehicle (AV) disruption, leading to concerns about its long-term valuation being overestimated [1][3]. Group 1: Analyst Ratings and Price Targets - Wedbush downgraded Lyft to Underperform from Neutral, setting a new price target of $16, down from $20, citing high vulnerability to AV disruption [1]. - Jefferies reduced its price target on Lyft to $22 from $23 while maintaining a Hold rating, warning that rising operational investments may hinder profit margin growth [2]. - Wells Fargo raised its price target on Lyft to $26 from $20 with an Equal Weight rating, acknowledging potential benefits from a strong domestic market forecast but remaining cautious due to concerns over international expansion [3]. Group 2: Business Model and Market Position - Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the US and Canada, utilizing multimodal transportation networks through its platform and mobile applications [4]. - The company's specialized focus on the US market may provide short-term benefits, but its lack of a diversified business model raises long-term concerns [1][3].