Shares of Lyft (NASDAQ:LYFT) have been volatile today following the downgrades from two analysts: Argus’ Bill Selesky and Jake Fuller from BTIG. Both have Hold ratings on the stock and are concerned about Lyft’s cost structure, as they believe the firm needs to cut expenses even further in order to bring it in line with peers.
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Ultimately, they cite this as a reason for Lyft’s poor financial performance, along with weak pricing and Uber’s strong position. As a result, Selesky slashed his estimates for Fiscal Year 2023 earnings from $0.80 per share to $0.33 per share.
Today’s downgrades are part of a growing trend, as Deutsche Bank, Wells Fargo, and others have done the same thing over the past several days. Overall, Wall Street analysts have a Hold consensus rating with a price target of $14.20 on LYFT stock, implying 35.5% upside potential, as indicated by the graphic above.