Nomura upgrades Lyft to Neutral on proof of cash generation

Nomura upgraded Lyft (LYFT) to Neutral from Reduce with a price target of $13, down from $15. Lyft shares are down 22% year-to-date while peer Uber (UBER) is up 19%, the analyst tells investors in a research note. During this time, the cost cuts and operational overhaul executed by Lyft’s management in order to focus on improving profitability and staunching cash burn “have started to show results,” says the firm. Nomura believes proof of the company’s cash generation ability limits share downside risk amid the overhang from U.S. recession concerns. It views the stock as fairly valued.