TD Cowen’s Top Analyst Bullish on Lyft: Crowns It the Ultimate ’Smidcap Gem’ for 2025

Lyft just got Wall Street's golden nod—and skeptics are scrambling to explain why they missed it.

The Upgrade That Shook Rideshare

TD Cowen’s lead analyst slapped a 'Best Smidcap Idea' rating on Lyft, sending whispers through trading floors. No fluffy jargon—just a straight shot of confidence in a sector where 'profitability' still sounds like a theoretical concept.

Why Lyft? Why Now?

While Uber eats the regulatory spotlight, Lyft’s quietly optimizing its algo-driven pricing and driver retention. Cowen’s call hints at an open lane for upside—assuming the company remembers growth isn’t just burning cash at stoplights.

The Cynical Kick

Funny how 'top analyst upgrades' always land *after* the stock’s had its coffee. But hey, at least this one didn’t wait for a 52-week high to say 'buy.'

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Lyft stock ROSE 6.1% on Tuesday, bringing the year-to-date rise to about 23%. In comparison, Uber Technologies (UBER) stock has rallied about 52% year-to-date. Both LYFT and UBER stocks have outperformed the broader market.

Top Analyst Turns Bullish on Lyft Stock

Blackledge sees multiple growth levers for Lyft, including the company’s refocus on tier 2 cities (markets outside the top 25). He specifically noted Lyft’s business in Charlotte and Indianapolis, which grew over 30% year-over-year in the first quarter of 2025. The analyst stated that Lyft has a massive international opportunity, backed by the acquisition of European mobility app FREENOW. Blackledge expects the deal to boost gross bookings by about 1 billion euros annually following its completion. He views Canada also as a good opportunity, growing 100% year-over-year in 2024, followed by 50% growth in Q1 2025.

Additionally, Blackledge noted Lyft’s product innovation, with a focus on improvements for both drivers and riders. For instance, Price Lock allows riders to lock in a consistent daily price while generating predictable subscription revenue for the company. He highlighted strategic partnerships, mainly the DoorDash deal that is helping drive Lyft’s active rider base. The analyst also noted management’s strong execution.

Blackledge doesn’t see any significant change in the market shares of Uber and Lyft at 70% and 30%, respectively, of the U.S. rideshare market. He contends that Lyft doesn’t need to take share from Uber “for the stock to work.” Finally, the analyst expects autonomous vehicles (AVs) to expand the rideshare total addressable market (TAM) over the long term. In this regard, Blackledge noted the company’s partnerships with May Mobility and the Japanese company Marubeni.

Blackledge ranks 352nd out of more than 9,600 analysts tracked by TipRanks. He has a success rate of 58%, with an average return per rating of 12.5% over a one-year period.

Is Lyft a Good Stock to Buy?

Wall Street is sidelined on Lyft stock, with a Hold consensus rating based on 21 Holds, seven Buys, and one Sell recommendation. The average LYFT stock price target of $17.30 indicates 9.1% upside potential.