Lyft downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Doug Anmuth downgraded Lyft to Neutral from Overweight with a price target of $15, down from $29, following last night’s results. The firm says its positive thesis had been based on a post-pandemic recovery combined with an accelerated shift to profit through cost rationalization. However, rideshare is now approaching full recovery in the U.S., but Lyft is not, the analyst tells investors in a research note. The market is normalizing with an increased supply of drivers and prices are moderating lower, but these dynamics, combined with elevated insurance costs, "seem to have caught Lyft off guard and are negatively impacting the business," the analyst tells investors in a research note. JPMorgan is concerned that it has become more difficult for Lyft to operate in a normalized environment, and it believes that Uber’s network and scale benefits are increasingly weighing on Lyft’s execution.