Lyft downgraded to Neutral from Buy at Citi

Citi analyst Itay Michaeli downgraded Lyft to Neutral from Buy with a price target of $17, down from $45, following last night’s Q4 results. The company’s "surprisingly soft" Q1 guidance, which prompted management to already back away from its 2024 targets, breaks the near-term stock thesis, the analyst tells investors in a research note. Citi says Lyft’s Q1 revenue outlook and contribution margin bridge suggest a lot has gone wrong for the company in a very short amount of time, even as industry conditions improve. The firm finds it difficult to identify a compelling near-term risk/reward setup following the results.