Mon. Dec 9th, 2019

Analyst predicts the possibility of Lyft stock doubling

J.P. Morgan has put forward quite a bold statement.

The bank has referred to the ride-hailing company as a forerunning internet choice. Lyft has also been compared to Match and Amazon.com by the bank. Doug Anmuth, an analyst, has a price target of $85 for the shares. This is an increase of 100% from the latest levels.

Anmuth directs his focus to internet stocks. Other than Lyft, he keeps a check on Amazon, Netflix, Facebook, etc.

Lyft is more than just a ride-hailing service. Through its mobile application, users have access to scooters and can also keep a check on public transit options. Its competitor, Uber Technologies, also offers food delivery facilities.

At the end of the day, however, both Uber and Lyft are transportation firms. Lyft, for example, joins forces with auto parts suppliers like Aptiv. Conventional car producers, for instance, Ford Motor, General Motors, etc., are intending to compete with the companies by working on driverless transportation, investing in robotaxi facilities, etc.

In a research report released on Friday, which went over the Q3 earnings for his coverage list, Anmuth stated how Lyft put forward a profit and operating earnings considerably better than predicted, as the company continues to obtain a share of a rational United States ride-share market. Anmuth has his attention on Lyft’s continuing strive towards profitability.

Anmuth is not the only one with a liking for Lyft stock. On Wall Street, the company is a consensus buy.

There is a stark contrast, however. Tech analysts are on Lyft’s side, whereas car analysts aren’t.

Since their first public offering in March, a share costing $72, shares of Lyft have dropped nearly 41%. On the other hand, the S&P 500 has increased by 8.6% in the same time.