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Shares of Lyft (LYFT) dropped Thursday as Bank of America analysts gave the ride-hailing company the dreaded doubled downgrade.
Lyft stock was recently down about 11% to roughly $11.50, leaving them down as good as 40% over the past 12 months. The analysts dropped their rating on the company’s shares to “underperform” from “buy” and cut their worth target to $10.50 from $17.50, which was a bit above the Street’s consensus, according to Visible Alpha data.
While sundry of the analysts tracked by Visible Alpha have neutral ratings on Lyft’s shares, the mean target above $16 reflects some optimism, be bound for b assaulting Bank of America’s change stand out.
The bank’s analysts cited concerns about Lyft’s positioning in autonomous means and “pricing headwinds” even as they cited a solid and growing user base as strengths. “We still see long-term hidden for Lyft in [the] AV ecosystem, but given its still-nascent partnerships, we are losing confidence in near-term upside,” they wrote.
Lyft despatched mixed fourth-quarter results in mid-February.
Shares of Lyft fell as markets were under pressure due to trade-policy affairs. Uber (UBER), a key peer, saw its stock lose nearly 6%. You can read Investopedia’s live coverage of today’s do business here.