Lyft is enjoying a strong year in 2025. That won’t carry over into 2026, according to Wedbush. Analyst Scott Devitt downgraded shares to underperform from neutral. His $16 price target, cut from $20, implies downside of 19.4% from Thursday’s close. The ridesharing company is up nearly 54%, on pace for its biggest annual gain ever. However, Devitt expects the proliferation of autonomous vehicles to put major pressure on the stock in the new year. “Lyft is most at risk to the impact of AV disruption given the company’s exposure to the US ridesharing market and undiversified offering mix,” he wrote in a note to clients. “While the company could carve out a specialized focus in the AV ecosystem, we think AV operators will opt for more 1P distribution.” LYFT YTD mountain LYFT YTD “As a result, we believe the market is underestimating the negative terminal value impact that AVs may have on Lyft’s [discounted cash flow] value,” he added. To be sure, Lyft is making moves to protect itself from the potential AV boom. The company said earlier this year it’s partnering with Google’s Waymo to launch a robotaxi service in Nashville in 2026. Still, Devitt pointed out that Waymo hasn’t announced any new partnerships with Lyft since. “As Waymo moves past its ‘training wheels’ phase of development, we expect more distribution via Waymo One and less via 3P integration. 2026 could prove to be a painful year for ridesharing, if true,” he said. Lyft shares slid more than 3% in the premarket following the downgrade. Most analysts covering the stock are neutral. LSEG data shows that 33 of 49 rate Lyft as hold.
