Truist analyst Youssef Squali downgraded Lyft (LYFT) to Hold from Buy with a price target of $14, down from $40, after its Q4 results and guidance miss last night. The company’s competitive pressures have intensified with Uber (UBER) in January with Lyft lowering its base pricing to better compete, which pressured its revenue growth, the analyst tells investors in a research note. The firm also notes that the lower revenue and higher insurance costs disclosed by the management seem to be more of a structural issue for Lyft than for Uber. Truist further cites Lyft having walked back its guidance for $1B in Adjusted EBITDA and $700M in free cash flow for FY24, adding more uncertainty to the stock.
Published first on TheFly
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