Lyft initiated with a Market Perform at MoffettNathanson

MoffettNathanson analyst Michael Morton initiated coverage of Lyft with a Market Perform rating and $15 price target. After a decade of growth at all costs, the "bumpiest parts of the ride are in the rearview mirror," the analyst tells investors in a research note. The firm says gig economy market winners are becoming entrenched, marketing intensity is declining, and the U.S. market has started to rationalize through consolidation. However, Lyft is on the losing end of Uber’s mobility and delivery network effect, MoffettNathanson contends. Lyft’s diseconomies of scale on insurance, marketing, and driver supply make for a challenging outlook, the analyst writes.