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Lyft Requires a âLeap of Faithâ for Investors With Shares Slumping
By Esha Dey
April 2, 2019, 8:17 PM GMT+7 Updated on April 2, 2019, 8:54 PM GMT+7
A day after dropping below its initial public offering price, Lyft Inc. shares were volatile Tuesday as more skeptics emerged on Wall Street.
Investors in the ride-sharing service âneed to take a big leap of faithâ to justify its current valuation, Seaport Global analyst Michael Ward told clients as he gave Lyft its first sell rating. The current valuation reflects an âoverly optimistic view of consumer behaviorâ in the U.S. and expectations that millennials will forgo owning their own cars, Ward said. His price target on the stock is $42, or 39 percent below the last closing price.
Lyft shares fell as much as 4.2 percent in New York before paring losses and briefly trading higher. The shares tumbled 12 percent on Monday after multiple cautious analyst reports warned that the companyâs growth may be poised to slow. Only two of the eight analysts tracked by Bloomberg have a buy recommendation on the shares.
https://www.bloomberg.com/news/articles/...emium-asia
By Esha Dey
April 2, 2019, 8:17 PM GMT+7 Updated on April 2, 2019, 8:54 PM GMT+7
A day after dropping below its initial public offering price, Lyft Inc. shares were volatile Tuesday as more skeptics emerged on Wall Street.
Investors in the ride-sharing service âneed to take a big leap of faithâ to justify its current valuation, Seaport Global analyst Michael Ward told clients as he gave Lyft its first sell rating. The current valuation reflects an âoverly optimistic view of consumer behaviorâ in the U.S. and expectations that millennials will forgo owning their own cars, Ward said. His price target on the stock is $42, or 39 percent below the last closing price.
Lyft shares fell as much as 4.2 percent in New York before paring losses and briefly trading higher. The shares tumbled 12 percent on Monday after multiple cautious analyst reports warned that the companyâs growth may be poised to slow. Only two of the eight analysts tracked by Bloomberg have a buy recommendation on the shares.
https://www.bloomberg.com/news/articles/...emium-asia
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