Shares of Lyft (NASDAQ: LYFT) were down 4.3% in morning trading on Tuesday as Bank of America analyst Michael McGovern initiated coverage of the stock with a Sell rating with the lowest price target on the Street of $14.
The analyst was bearish on the stock as he believes that the ridesharing company’s “smaller scale” will “create unique challenges in its post-pandemic recovery, including share losses.”
McGovern pointed out that while Lyft had stated that its rides were up 4% month-over-month in July, considering that July had one extra day, it implied that “normalized” growth in ridesharing was only 1%. The analyst believes that Lyft’s close competitor, Uber (UBER) outpaced the company in July.
What is the Forecast For Lyft Stock?
Wall Street analysts are cautiously optimistic about Lyft with a Moderate Buy consensus rating from Wall Street analysts based on 13 Buys and 10 Holds.
Lyft’s average stock prediction of $32.11 implies 130.2% upside potential.
