Lyft And DoorDash Stocks Are Trading Higher Monday - Here's Why
Portfolio Pulse from Anusuya Lahiri
Lyft, Inc (NASDAQ:LYFT) and DoorDash, Inc (NASDAQ:DASH) stocks rose after RBC Capital upgraded their stock ratings and price targets, citing improved execution and potential for growth. Analyst Brad Erickson raised Lyft's price target from $17 to $23 and DoorDash's from $130 to $175. Erickson highlighted Lyft's scale and marketplace efficiency, and DoorDash's resilience in order growth and potential partnerships, including with Lyft, as key factors for the upgrades.
March 04, 2024 | 5:43 pm
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POSITIVE IMPACT
DoorDash's stock rating was upgraded by RBC Capital from Sector Perform to Outperform, with a new price target of $175, up from $130. The upgrade highlights DoorDash's resilience in order growth and potential for partnerships, including with Lyft.
The upgrade reflects confidence in DoorDash's continued order growth and potential strategic partnerships, which are key drivers for the company's future success. This positive analyst outlook can lead to increased investor interest and a rise in stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Lyft's stock rating was upgraded by RBC Capital from Sector Perform to Outperform, with a new price target of $23, up from $17. The upgrade is based on improved execution and potential for growth in partnerships and down-market products.
The upgrade by RBC Capital is a strong positive signal to the market, indicating improved business fundamentals and potential for future growth. This typically leads to increased investor confidence and can drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Uber Technologies, Inc (NYSE:UBER) was mentioned in relation to Lyft's performance, with price movements in relative lock-step and similar driver supply dynamics. This comparison may influence investor perceptions of Uber's competitive positioning.
While the direct impact on Uber's stock may be neutral in the short term, the comparison to Lyft's improving execution could influence investor perceptions and potentially impact Uber's stock indirectly. The exact effect will depend on broader market interpretations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50