Shut-up of vertical signal with logos for ride-hailing corporations Uber and Lyft.
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Susquehanna bumped its score of Lyft’s inventory to constructive from impartial on Tuesday, because the agency says Lyft is “a pure-play on US ridesharing” that ought to profit from much less buzz round Uber.
“With the US rideshare market becoming more rational, LYFT showing clear evidence of marketing and insurance cost leverage, and UBER’s IPO out of the way, this is the time to buy the stock,” Susquehanna analyst Shyam Patil stated in a word to traders.
Broadly talking, Patil stated his agency likes the chance within the ridesharing market, in addition to Lyft’s “more longer-term transportation-as-a-service vision.” Susquehanna believes Lyft has “a strong #2 market presence,” with about 40% of the U.S. ridesharing market. Moreover, compared to Uber, the agency stated Lyft has a cleaner fashions that provides traders extra choices, “especially as the autonomous wave hits the market.”
Lyft shares rose 3.9% in premarket buying and selling from Monday’s shut of $56.76 a share. The inventory has rallied a bit since hitting a low of $48.15 a share final month however stays properly under its March IPO price of $87.24 a share.
Susquehanna additionally raised its price goal on Lyft to $80 a share from $57 a share.