Wells Fargo Boosts Lyft (LYFT) PT to $26 on Strong US Outlook, Remains Neutral Due to International Diversification Concerns

Lyft Inc. (NASDAQ:LYFT) is one of the high short interest stocks to buy right now. On December 9, Wells Fargo raised the firm’s price target on Lyft to $26 from $20, while maintaining an Equal Weight rating on the shares. Wells Fargo acknowledged that because Lyft is primarily a US rideshare operator, its positive outlook for the US rideshare market in 2026 is a clear benefit to the stock. However, the firm is maintaining a neutral stance because it views Lyft’s recent diversification into non-US assets as a move that will negatively impact both its valuation multiple and its growth rate.

In Q3 2025, Lyft achieved 10.67% year-over-year growth in its quarterly revenue, which totaled $1.69 billion but missed expectations by $13.18 million. The company also earned $0.30 per share, although this number missed Street estimates by $0.01. The quarter saw new record highs in Driver Hours, Active Riders, and Gross Bookings. Market demand remained robust, evidenced by a record 18% increase in Active Riders and a 16% increase in Gross Bookings. A significant portion of this growth came from areas the company considers underpenetrated, with 70% of ride growth in Q3 originating from these markets.

Lyft is executing several strategic initiatives. Its partnership with United Airlines is now live, enabling users to earn miles on eligible rides, which is expected to enhance customer loyalty. The company has also expanded its AV partnerships, including collaborations with Waymo and Tensor, powered by NVIDIA (NASDAQ:NVDA), positioning Lyft across the AV value chain. Furthermore, acquisitions like Free Now in Europe and TBR Global Chauffeuring are intended to double Lyft’s TAM and expand its global presence and high-value service offerings.

Lyft Inc. (NASDAQ:LYFT) operates a peer-to-peer marketplace for on-demand ridesharing in the US and Canada. The company operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications.

While we acknowledge the potential of LYFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.