Market Overview

Wedbush Upgrades Lyft, Impressed With Ridership And Improved Profitability

Share:
Wedbush Upgrades Lyft, Impressed With Ridership And Improved Profitability

Lyft Inc. (NASDAQ: LYFT) is driving toward profits, and Wedbush thinks investors should hop in the car for the ride.

Wedbush upgraded Lyft on the back of a stronger-than-expected quarter for the ridesharing company, citing stronger revenue numbers and hints that the peak loss year is in the rearview mirror.

The Analyst

Wedbush analyst Daniel Ives upgraded Lyft from Neutral to Outperform and raised the price target from $67 to $75.

The Thesis

Lyft showed in the second quarter what Wedbush had been looking for, including better rideserhip, higher revenue per rider and, importantly, profitability, which will translate into Street credibility.

Ives was most impressed Lyft was able to drive strong rider and revenue per rider growth, while cutting back on promotions and discounts. Not only did Lyft offer fewer discounts, it actually raised prices in late June in some cities and routes, boosting revenue per rider numbers. Less discounting also led to significant cost saving in sales and marketing, he said.

“While not all questions are answered yet, we think there is enough evidence in the field that is positioning Lyft to be in a stronger than expected domestic position to gain share and monetize this opportunity with an improved expense trajectory sooner than expected,” Ives wrote in a note.

Ives said it looks to be that 2018 will now be the peak loss year for Lyft, with the company seeing year-over-year improvement in EBITDA losses, a year earlier than expected.

Price Action

Shares of Lyft were up 4.23% Thursday morning to $62.84.

Related Links:

Lyft Analysts Largely Bullish As Quiet Period Ends

Evercore Along For Bullish Ride With Uber, Lyft

Latest Ratings for LYFT

DateFirmActionFromTo
Sep 2019UpgradesHoldBuy
Sep 2019MaintainsBuy
Sep 2019Initiates Coverage OnBuy

View More Analyst Ratings for LYFT
View the Latest Analyst Ratings

Posted-In: Daniel Ives ridesharing WedbushAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (LYFT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MUCascendReiterates65.0
ALDRCanaccord GenuityDowngrades20.0
LEGHLake StreetInitiates Coverage On21.0
CHUGoldman SachsUpgrades13.2
STZBMO CapitalMaintains230.0
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

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

XMR/USD Regains Ground, Off The Intraday Low At $94.14

GBP/USD: (Temporary?) Calm Continues