This struggling rideshare stock could reap rewards of robotaxi boom, Rothschild & Co. says
Lyft could see its shares soar as more autonomous vehicles hit the streets, despite concerns that the emerging technology could pose a threat to the rideshare giant, according to Rothschild & Co. Redburn. The investment firm upgraded Lyft to buy from neutral. It also hiked its target on shares to $22 from $17, suggesting 54% upside from Tuesday’s close. “While viewed as disruptive pressure to incumbents, we see…Lyft as well positioned to remain the aggregators of ride-hailing demand while providing commercial and operational capabilities to soon-to-be fragmented [autonomous vehicle] suppliers,” analyst James Goodall said Wednesday in a note to clients. “Over time, this should support continued growth.” Shares of Lyft have plunged 26% in the year to date as the rideshare platform faces labor cost pressures and increasing competition from robotaxi startups such as Waymo. LYFT YTD mountain Lyft is down 26% in 2026. However, Lyft could harness driverless technology to boost its business, even edging out newer, AV-focused competitors in the ride-hailing market, according to Rothschild. Lyft has top-tier pricing, matching and dispatching algorithms and other infrastructure that could enable it to maximize AV utilization, per the investment firm. Additionally, the company has more experience navigating challenging regulatory environments compared to its newer peers. Goodall also noted that Lyft has forged partnerships with several AV firms, which should position it to capitalize on a potential driver-less vehicle boom. “For Uber and Lyft, the more robotaxi providers that come to their platforms, the better and the stronger their long-term positions should be,” the analyst wrote. “Each AV partner brings more AV supply, greater global coverage and, as a result, decreases the possibility that AV developers can go it alone. Indeed, the history of ride-hailing demonstrates that this is a supply-led market.” Rothschild & Co.’s call goes against consensus on Wall Street. Of the 49 analysts covering Lyft, 32 have a hold on the stock, while just 15 have a buy or strong buy rating on it, LSEG data shows.
