KeyBanc upgrades Lyft on ‘meaningful opportunity’ for EBITDA lift

KeyBanc analyst Justin Patterson last night upgraded Lyft (LYFT) to Overweight from Sector Weight with a $24 price target. Ridesharing data "appears stable," with Lyft data actually improving over the course of December, the analyst tells investors in a research note. The firm believes that when layered in with Lyft’s aggressive cost-cutting action in recent quarters and an ongoing recovery along the West Coast, the company has "meaningful opportunity" for improvement in EBITDA over the course of 2023. It sees the potential for positive revisions and multiple expansion for Lyft. Uber (UBER) is also operating well, but consensus estimates are "somewhat aggressive" on EBITDA for 2023 and 2024, adds KeyBanc, which keeps a Sector Weight rating on the shares.