Lyft (LYFT), along with the broader US rideshare market, remains a compelling alternative to car ownership amid rising vehicle costs, supporting double-digit growth across multiple platforms, according to Oppenheimer analysts in a note Wednesday.

Oppenheimer said ridesharing will "increasingly become a more enticing option for consumers as younger frequent users age into adulthood and the cost of car ownership increases."

The firm noted Lyft has been increasing driver supply, which has pushed fares lower and driven stable active rider and trip frequency growth. The company's initiatives, such as its Price Lock feature and its partnership with DoorDash (DASH), are also gaining traction, leading to increased spending among users.

Cost rationalization has created "significant" Earnings before interest, taxes, depreciation and amortization leverage, with Lyft reducing employee headcount by 34% since 2022, the analysts said.

Oppenheimer initiated coverage of Lyft with an outperform rating and a $15 price target, noting that its forecast already factors in a broad consumer pullback from tariffs.

The $15 target represents a more than 25% discount compared with peers, including Uber Technologies (UBER), the bank said.