Lyft's Steady Performance In Q3 Reinforces Rating: Analyst Highlights Ride-Hailing Resilience
Portfolio Pulse from Anusuya Lahiri
Piper Sandler analyst Alexander Potter maintained an Overweight rating on Lyft, Inc (NASDAQ:LYFT) with a price target of $14, despite shares being down 3% since Q3 results. Lyft's Q3 revenue of $1.158 billion exceeded estimates, with $3.55 billion in gross bookings. Lyft's take rate of 33% is higher than Uber's 28%, attributed to micro-mobility inclusion. Investors expected more generous Q4 guidance. Lyft's new management is building confidence with increased transparency in business metrics. Potter views Lyft as resilient to recession, especially compared to food delivery. He adjusted his estimates based on Q3 results but kept the price target due to a higher WACC of 13.9%. He projects Q4 revenue and EPS of $1.22 billion and $0.08, respectively. Lyft shares traded slightly lower at $10.35.
November 22, 2023 | 6:54 pm
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NEUTRAL IMPACT
Lyft's Q3 performance exceeded expectations with higher revenue and gross bookings. Analyst maintains Overweight rating and $14 price target. New management's transparency and resilience to recession are positives, but Q4 guidance may have disappointed investors.
While Lyft's Q3 performance was strong, the unchanged price target and slight disappointment in Q4 guidance may lead to a neutral short-term impact on the stock price. The resilience to recession is a positive factor, but market reaction to guidance and WACC adjustment may temper immediate gains.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEUTRAL IMPACT
Uber's Q3 mobility take rate of 28% is lower than Lyft's 33%, which is partly due to Lyft's inclusion of micro-mobility in its gross bookings figure.
Uber is mentioned in comparison to Lyft's take rate, which may not have a direct short-term impact on Uber's stock price. The comparison is more informational and does not reflect a direct performance issue for Uber.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50