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Lyft (NASDAQ:LYFT) Dips after Top RBC Analyst Downgrades Stock
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Lyft (NASDAQ:LYFT) Dips after Top RBC Analyst Downgrades Stock

Shares of Lyft (NASDAQ: LYFT) dipped in morning trading on Friday after top-rated RBC Capital analyst Brad Erickson downgraded the stock to a Hold from a Buy.

Erickson also halved the price target to $16 from $30 on the stock. The analyst’s price target implies an upside potential of 25.8% at current levels.

The top-rated analyst pointed out that Lyft’s closest competitor, Uber (UBER), has “structural advantages” that are “driving increased competitive intensity for LYFT where [long-term] profit targets likely limit its ability to maneuver.”

Erickson noted that Lyft is seeing “directionally worse pick-up times” as compared to Uber which could be a result of a driver shortage. The analyst also pointed out other advantages that Uber has over Lyft, including cheaper prices and a short pick-up window.

What is the Forecast for LYFT Stock?

Analysts are cautiously optimistic about LYFT, with a Moderate Buy consensus rating based on 11 Buys, 13 Holds, and one Sell.

The average price target for LYFT stock is $29.29 with an upside potential of 134.3% at current levels.

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