Lyft: BofA upgrades recommendation twice

(CercleFinance.com) - Bank of America announced on Friday that it had upgraded its recommendation on Lyft from 'underperform' to 'buy', while raising its price target from $15 to $20.


In a research note, the broker points out that the VTC specialist unveiled yesterday, at its investor day, targets for 2027 in terms of billings and operating income (Ebitda) that are well above Wall Street expectations.

In particular, the broker notes the ambitious forecasts communicated by the Californian group in terms of advertising revenues (Lyft Media) and the rate of conversion of earnings into free cash flow (FCF).

While the stock gained only 1% yesterday following these announcements, BofA explains that it perceives an "attractive" risk/return potential based on current price levels.

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