Mizuho Starts Lyft (LYFT) at Neutral

Mizuho analyst Lloyd Walmsley initiates coverage on Lyft (NASDAQ: LYFT) with a Neutral rating and a price target of $24.00.

The analyst comments "We launch coverage of Lyft with a Neutral rating and $24 target price, and see the risk/ reward as balanced. Lyft has executed well in cutting back on incentives, squeezing costs out of the business, and maintaining mid-teens ride growth. On the positive side, we see an opportunity for significant insurance savings, which could help margins and/or be passed along to consumer, accelerating ride growth. We think news flow around this bull case has been a big part of the run in the shares, up 30% over the past month (vs +4% for the Nasdaq Composite), and at this point it is largely priced in. On the cautious side, the outlook for core 3Q rides growth (ex-Freenow), shows further deceleration. Freenow likely requires investment given fierce competition in Europe. Our bull/bear upside/downside at 39%/(30%) leaves us Neutral rated, pending a more compelling risk/ reward."

For an analyst ratings summary and ratings history on Lyft click here. For more ratings news on Lyft click here.

Shares of Lyft closed at $21.87 yesterday.

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