Analyst reports on Lyft are bullish: ‘Future of human transportation’

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The Lyft Inc. application is displayed on an Apple Inc. iPhone in this arranged photograph taken in Montclair, New Jersey, U.S., on Saturday, Feb. 23, 2019.

Gabby Jones | Bloomberg | Getty Images

The Lyft Inc. application is displayed on an Apple Inc. iPhone in this arranged photograph taken in Montclair, New Jersey, U.S., on Saturday, Feb. 23, 2019.

The first round of Lyft analyst notes is bullish on the newly public ride-hailing company as brokerages across Wall Street clamor to recommend what one described as “the future of human transportation.”

Though each analyst presented a unique interpretation of Lyft’s business, most emphasized a large, global marketplace, a short list of competitors and a compelling valuation following early stock underperformance.

The flood of brokerage literature follows a quiet period after Lyft’s initial public offering on March 29, when it started trading at $72. Such quiet periods are designed to prevent underwriters and investment banks from using potentially confidential information commenting on a security.

The stock has since pulled back and closed Monday at $60.94, down more than 15% from its IPO price. It was flat in midmorning trading Tuesday after rising more than 2% in the premarket.

Credit Suisse analyst Stephen Ju, who initiated coverage with an outperform rating and $95 price target, told clients not to worry about short-term stock moves and focus on the company’s strong fundamentals.

“Lyft offers the consumer for the first time in history the option to rent transportation capacity on an as-needed basis,” Ju wrote. “As Lyft’s stated goal is to offer that Transportation as a Service platform, the addressable market of $1.2 trillion in US transportation spend does seem appropriate over the longer term.”

Piper Jaffray gave a bold title to its note, calling the company a “vehicle for change in the future of human transportation.”

Here’s a wrap of all the major analyst opinions.



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