LYFT has intriguing contrarian potential
LYFT Inc (NYSE:LYFT) stock was last seen 1.7% higher premarket, after announcing its first European acquisition -- a $199 million deal to purchase Hamburg-based ride-hailing platform FreeNow from BMW and Mercedes-Benz. The deal, expected to close in the second half of 2025, will expand Lyft’s reach to over 150 cities across nine countries, including Germany, France, and the U.K.
Despite the upbeat news, LYFT is down 15.6% year-to-date and 39.4% over the last 12 months. It recently breached $10 on April 7 for the first time since August -- and has carved a channel of lower lows since a Nov. 11 multi-year peak at $19.06.
Analysts remain largely skeptical, with 31 of 38 covering brokerages maintaining “hold” or worse ratings. More upgrades could provide a catalyst on the charts, and it may have already begun; Oppenheimer just initiated coverage on Lyft stock with an “outperform” rating and a $15 price target. There's short squeeze potential too, with short interest up 3.4% in the latest reporting period, and accounting for 10.6% of LYFT’s total available float.
Options traders are similarly cautious. The equity’s 10-day put/call volume ratio of 1.97, per data from the ISE, CBOE, and PHLX, ranks in the 100th percentile of its annual range. Should this pessimism begin to unwind, it could provide additional tailwinds for a rebound.