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. …