UBS has a ‘Neutral’ rating and $15 price target on the shares, implying a near 3% upside to the stock’s closing price on Thursday.
Ride-hailing firm Lyft Inc.’s (LYFT) partnerships and robotaxi plans indicate a steady path forward, UBS told investors in a research note on Friday.
The firm has a ‘Neutral’ rating and $15 price target on the shares, implying a near 3% upside to the stock’s closing price on Thursday. Earlier this month, Lyft partnered with China’s Baidu to deploy the latter’s Apollo Go autonomous vehicles (AVs) across key European markets through the Lyft platform.
Before that, the company announced the completion of its acquisition of European mobility platform FreeNow in a bid to double its current addressable market to over 300 billion personal vehicle trips per year.
On Stocktwits, retail sentiment around LYFT trended in the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘low’ levels. Shares of the company traded 4% higher at the time of writing.
A Stocktwits user expects the stock to rally up to the $15.30 to $15.50 range.
Another user opined that the company is a highly profitable business, but very undervalued.
UBS’s optimism on Lyft comes on the heels of the company announcing that its co-founders, Logan Green, Chair of the Board, and John Zimmer, Vice Chair of the Board, intend to step down from the board, following the end of a two-year transition plan. The two founded Lyft in 2012.
While Green will continue to serve as a Venture Partner at Autotech Ventures, Zimmer is launching a new consumer-focused business venture called YES&, the company said, while adding that the two co-founders will now collectively own about 9.69 million shares of Lyft Class A common stock.
The company said that Sean Aggarwal, who joined the board in 2016, has been elected to serve as Chair of the board, enhancing its independence. With the changes, the board reduced its size to seven members, six of whom are independent, the company noted.
LYFT stock is up by 20% this year and by about 44% over the past 12 months.
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