Bernstein sees ‘clear disconnect’ between how Street, Lyft view growth

In an open letter to Lyft‘s CEO and Board of Directors, Bernstein analyst Nikhil Devnani notes that there is “clearly a disconnect” between how the Street forecasts growth and how management views the growth curve. “We will not know which outlook is more accurate for a while, but investors are paid to be skeptical,” Bernstein said. The reset in the stock was arguably a lot more dramatic than fundamentals warranted, but Lyft has been a tough stock to own, it added. The firm offered some suggestions on how Lyft can go about regaining confidence from investors and create long-term value, namely be objective with the 2027 guidance; give investors incremental building blocks on core value drivers; keep the focus on North American rideshare; broaden the messaging and approach to partnerships; and explore buybacks as cash builds to a comfortable level. Bernstein has a Market Perform on Lyft with a price target of $13 on the shares.