Lyft: The AV Dark Horse With Breakout Potential
Summary
- Lyft is building a scalable, vertically integrated platform, well-positioned to benefit from mainstream autonomous vehicle adoption and partnerships in the AV space.
- Recent financials show strong growth in riders, bookings, and profitability, with management signaling confidence via an expanded share buyback program.
- Lyft's Flexdrive subsidiary and AV partnerships provide a differentiated, durable business model versus Uber, especially for small fleet operators.
- Despite risks from insurance costs and competition, my DCF model suggests ~125% upside, supporting a strong buy rating for Lyft shares.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of LYFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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