Is LYFT stock a buy right now?

Ahead of the company’s first investor day since its IPO, Roth MKM analyst Rohit Kulkarni is not yet ready to recommend Lyft (LYFT Stock Quote, Chart, News, Analysts, Financials NASDAQ:LYFT).

On Thursday, June 6 LYFT will host its investor day. The analyst says that while he likes the space, LYFT is looking to overcome a somewhat spotty track record.

“We remain bullish on the rideshare sector in the U.S., and while Lyft’s growth and profitability metrics are still well behind market leader Uber (UBER–Buy), capital appears to be flowing back into this sector,” Kulkarni said. “We continue to see LYFT as a pure play on the theme of transportation disruption in North America (including elements of the rise of micro-mobility). We believe the upcoming investor day provides an opportunity for LYFT’s new management team to earn the trust of investors after the prior team struggled for years with credibility issues. We believe Lyft’s management could provide a long-term growth/profitability outlook, and the following outlook could become a positive catalyst for Lyft shares this week: 2026E Gross Bookings exceeding $21.5bn and 2026E EBITDA margins exceeding 3.0%, implying “mid-to-high teens” bookings CAGR and consistent 50bps margin Y/Y expansion.”

In a research update to clients June 3, Kulkarni maintained his “Neutral” rating and price target of $19.00 on LYFT.

The analyst thinks LYFT will post EPS of $0.56 on revenue of $5.43-billion in fiscal 2024. He expects those numbers will improve to EPS of $0.80 on a topline of $6.28-billion the following year.

“Our price target of $19 is based on 14x 2025E EBITDA. We believe LYFT should trade at a discount to UBER due to Lyft’s market position/market share, lack of product and geographic diversification, and structurally lower level of ride-sharing profitability,” he concluded.