Lyft downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Brian Fitzgerald downgraded Lyft to Equal Weight from Overweight with a price target of $13, down from $21.25. With Lyft responding to market realities to remain competitive with base rate cuts and reduced Prime Time via increased driver supply, achieving FY24 EBITDA and free cash flow targets "now looks unlikely," the analyst tells investors in a post-earnings research note. The firm, which notes that Lyft management is reassessing FY24 profit targets, is "slashing" its own EBITDA estimates and said its valuation work "suggests modest upside" even after the 30% after-hours move lower in Lyft shares.