Lyft's Recovery Hinges On West Coast Revival: This Analyst Sets $15 Target Amid Market Share Loss To Uber
Portfolio Pulse from Shivani Kumaresan
BMO Capital Markets analyst Brian Pitz initiated coverage on Lyft Inc (LYFT) with a Market Perform rating and a $15 price target, citing concerns over insurance cost inflation and market share loss to Uber Technologies Inc (UBER). Lyft's recovery is dependent on the West Coast market, where it over-indexes. Lyft has lowered prices to align with industry trends, resulting in volume growth. Pitz also initiated coverage on Uber with an Outperform rating and a $69 price target, highlighting Uber's strength in trips, mobility, and delivery growth, as well as its ability to innovate and integrate AI across its tech stack. However, geopolitical uncertainty poses a risk for Uber. UBER shares were up 2.44% at $60.45, while LYFT shares rose 0.30% to $13.59.
January 09, 2024 | 6:58 pm
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NEUTRAL IMPACT
Lyft received a Market Perform rating and a $15 price target from BMO Capital Markets, with concerns over insurance cost inflation and market share loss to Uber. The company's recovery is hinged on the West Coast market revival.
The Market Perform rating and $15 price target reflect a neutral outlook for Lyft's stock in the short term. The concerns over insurance costs and market share loss are significant, but the potential for recovery in the West Coast market could balance the negative impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Uber received an Outperform rating and a $69 price target from BMO Capital Markets. The company is recognized for its strong performance in trips, mobility, and delivery growth, as well as its AI integration, despite geopolitical risks.
The Outperform rating and higher price target suggest a positive short-term impact on Uber's stock. The company's strong performance and innovation are likely to drive investor confidence, although geopolitical uncertainty is a noted risk factor.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80