Lyft (LYFT) faced a "challenging" Q4 print but skepticism around the stock appears largely embedded at current levels, RBC Capital Markets said in a Monday note.

At a post-earnings call with CFO Erin Brewer, the company's management said that as of February, the company has recovered its market share following a period of intense promotional activity by competitors targeting lower-end rides in Q4. RBC said Lyft took a disciplined approach to pricing rather than matching aggressive promotions broadly.

The company, however, expects bookings growth to outpace ride growth. Management said the gap between the two would remain wider than historically normal at least through the first half of the year. RBC attributed this to prior competitive pricing, a mix shift toward higher-end rides and the United partnership ramping through 2026.

The investment firm said Lyft's tone around the margin ramp beyond its Q1 guidance remained upbeat. Management pointed to mix shift, partnerships and operational efficiencies as key drivers. However, RBC said investors appear more skeptical about the company's ability to achieve its longer-term targets.

RBC has an outperform rating on the stock and a $22 price target.

Shares of Lyft were down more than 4% in recent Monday trading.

Price: 13.38, Change: -0.57, Percent Change: -4.12