11:08 AM EST, 02/12/2025 (MT Newswires) -- Lyft's ( LYFT ) low pricing resulted in Q4 bookings coming in below consensus but ride volumes remained strong and earnings before interest, taxes, depreciation, and amortization exceeded forecasts, BofA Securities said in a note Wednesday.

The firm revised its H1 bookings estimate downward due to pricing challenges but maintained strong margin growth over expectations of positive take rate and gross margin trajectory, while keeping earnings projections relatively unchanged.

Ride volume accelerated in January and cost efficiencies in insurance and incentives supported strong free cash flow and gross margin improvements, according to the note.

The firm said Lyft's ( LYFT ) management seems confident in its niche within the autonomous vehicle ecosystem and is in advanced discussions with new partners in the sector. However, competition from Waymo in San Francisco remains a factor, the note said.

BofA reduced its price objective on Lyft's ( LYFT ) stock to $17.50 from $21, and reiterated its buy rating.

Shares of Lyft ( LYFT ) were down more than 7% in recent trading.

Price: 13.34, Change: -1.06, Percent Change: -7.33