Lyft not being given credit for competing with Uber, says RBC Capital

RBC Capital analyst Brad Erickson keeps an Outperform rating and $21 price target on Lyft (LYFT) after meeting with its management team to discuss top-line strategy, competitive landscape, near-term demand trends, AV’s, new products, partnerships, media and insurance/fixed cost efficiencies. The firm remains positive on the stock and believes that the company’s not being given credit for merely competing with Uber (UBER) on an apples-to-apples basis, the analyst tells investors in a research note. Ride-hailing is an attractive, secularly growing space with two top players amidst “financially immaterial” autonomous driving upstarts, which are likely being ascribed significant credit for playing a misunderstood role in the eventual AV value chain, RBC adds.