Lyft price target lowered to $17 from $18 at Wells Fargo

Wells Fargo analyst Ken Gawrelski lowered the firm’s price target on Lyft to $17 from $18 and keeps an Equal Weight rating on the shares. While Wells expects Lyft to beat on its upcoming Q2 earnings report, the firm sees this enthusiasm tempered by “late quarter rides softness.” Wells sees potential upside if Lyft gains more market share than expected, and if the company achieves significant pricing improvement while maintaining current competitive dynamics, but sees downside risk if Lyft continues to lose market share to Uber, and/or if the California Supreme Court of Appeals rules unfavorably in Prop 22 Case.