Skip to main content

Market Overview

KeyBanc: Lyft's Profits Will Come With Development Of Autonomous Tech

KeyBanc: Lyft's Profits Will Come With Development Of Autonomous Tech

The prospects for a big pick-up in profit for LYFT Inc. (NASDAQ: LYFT) may be further down the road, when the company can use driverless cars, according to KeyBanc Capital Markets. 

The Analyst

Andy Hargreaves initiated coverage of Lyft with a Sector Weight and $67 fair value estimate. 

The Thesis

The large cost gap between car ownership and ride-hailing may mean much of the profit potential for Lyft won’t come until the driver is removed from the equation, Hargreaves said in a Tuesday initiation note — but fully autonomous ride-sharing remains “several years” away. (See the analyst's track record here.) 

In the near-term, KeyBanc expects a slowing in market growth and Lyft's pace of market share gain, factors that may inhibit revenue and EBITDA growth, the analyst said. 

Lyft’s main competitor Uber is preparing for a $10-billion IPO. 

Lyft's revenue is unlikely to top KeyBanc’s estimate without a larger capture of part of the owned car opportunity or significant share gain from Uber, both of which Hargreaves said he views as unlikely scenarios.

Price Action

Lyft shares were trading slightly higher at $61 at the time of publication Tuesday. 

Related Links:

Credit Suisse Bullish On Lyft: 'One Of The Most Attractive Return Profiles In Our Coverage Universe'

Raymond James Sees Opportunity In Lyft Sell-Off

Latest Ratings for LYFT

Mar 2021Vertical ResearchInitiates Coverage OnBuy
Mar 2021Morgan StanleyMaintainsEqual-Weight
Mar 2021WedbushMaintainsOutperform

View More Analyst Ratings for LYFT
View the Latest Analyst Ratings


Related Articles (LYFT)

View Comments and Join the Discussion!

Posted-In: Andy Hargreaves autonomous KeyBanc Capital Markets ride-hailingAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at