Market Overview

Analyst: Uber Roadshow A 'Dark Shadow' Over Lyft

Share:
Analyst: Uber Roadshow A 'Dark Shadow' Over Lyft

Lyft Inc (NASDAQ: LYFT) is off to a rough start on the public market, but one analyst says things could get even worse in the near term.

The Analyst

Wedbush analyst Daniel Ives reiterated his Neutral rating and $80 price target for Lyft.

The Thesis

Ives says Lyft’s larger competitor Uber will likely cash a “dark shadow” over Lyft stock when its S-I filing becomes public and it begins its IPO roadshow.

“The primary issue is around the underlying metrics that Uber will discuss around take rates, ride sharing data, driver ecosystem, and a myriad of other metrics relative to Lyft which may put the company in a more negative light,” Ives wrote in the note.

Ives likes Lyft’s position as the No. 2 player in a potentially $1 trillion ridesharing industry, but the stock is a risky bet given the company’s unproven path to profitability and lack of publicly traded comps to support its valuation.

After the initial wave of post-IPO buying, Ives says potential Lyft investors are likely now waiting on the sidelines to see if the grass is greener with Uber.

In the longer term, Ives is bullish on Lyft as long as the company can keep delivering the level of impressive growth it reported in its own S-1 filing. It’s too early to judge Lyft’s business or its stock at this point given the company’s massive opportunities, according to Ives.

Price Action

Lyft's stock traded higher by 2 percent Thursday to $61.12 per share, still well below its $72 IPO price.

Related Links:

On Its Way: Uber Plans To Sell $10B Of Stock In May IPO

Is The Lyft IPO A 'Panic Moment' For Venture Capitalists?

Latest Ratings for LYFT

DateFirmActionFromTo
Apr 2019Initiates Coverage OnMarket Outperform
Apr 2019Initiates Coverage OnBuy
Apr 2019Initiates Coverage OnOutperform

View More Analyst Ratings for LYFT
View the Latest Analyst Ratings

Posted-In: Citron Research Daniel Ives Uber WedbushAnalyst Color Reiteration Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (LYFT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TWTRMaintains48.0
FSLRReiterates75.0
DISMaintains168.0
AZPNUpgrades116.0
WWEMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

BMO: Potential Headwinds For CVS Cancel Out Valuation Advantage

Bad News For Stores, Good News For This ETF