UBS analyst Lloyd Walmsley initiated coverage of Lyft Inc with a Buy rating and $60 price target, implying a 50.8 percent upside.
The company benefits from a robust post-pandemic recovery as a pure-play rideshare business operating in a “stable duopoly market,” with little noise around investment in delivery wars and having no exposure to international competition.
Lyft could lose some modest share to Uber Technologies Inc, but this would be mix related rather than competitive, Walmsley adds, stating that its margins “can still scale.”
Lyft shares closed 7.87 percent higher at $41.15 on Thursday.
By Anusuya Lahiri
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