Lyft: Jefferies a buyer as shares trade 14% below IPO price
(CercleFinance.com) - Jefferies is reiterating its "buy" rating on ride-hailing company Lyft, with a price target of 90 dollars, as the share is trading 14% below its IPO price of 72 dollars.
In a note to clients, the broker says it expects the stock to recover as the company executes and misconceptions clear.
Jefferies, in particular, sees three key ingredients for the stock to recover, i.e. (1) overcome concerns that growth will be capped as a number 2 behind Uber, (2) disprove bears who dismiss that Lyft will never make money and (3) expand valuation multiple as the latter conditions are realised.
The shares of Lyft are currently up 0.8% at 62.3 dollars.
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