Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Lyft gets boost from Argus, sees 22% upside for shares

EditorEmilio Ghigini
Published 03/05/2024, 08:19 AM
© Reuters.

On Tuesday, Argus raised its rating on shares of Lyft Inc. (NASDAQ:LYFT) to Buy from Hold, with a new price target set at $20.00. This adjustment reflects an anticipated total return of around 22% from the current stock price. The upgrade is based on the company's recent performance improvements and strategic advancements under the guidance of its new CEO, David Risher.

The firm noted that Lyft has made significant progress in reducing costs and enhancing operational efficiency, which has positioned the company to benefit from positive trends within the ridesharing industry. Argus highlighted Lyft's efforts in streamlining operations, which have contributed to the company's strengthened position in the market.

In addition to operational improvements, the ridesharing company's financial outlook was a key factor in the rating change. Lyft's announcement, made during its fourth-quarter earnings release for 2023, to achieve free cash flow positivity in 2024 was particularly influential. This declaration was interpreted as a strong signal of confidence from Lyft's management in the company's growth trajectory and the overall health of the ridesharing industry for the upcoming year.

Argus's optimistic outlook is also supported by Lyft's performance in the fourth quarter of 2023. The company's commitment to becoming free cash flow positive is seen as a crucial step in demonstrating its potential for sustainable growth and profitability.

The new price target and upgraded rating reflect a positive view on Lyft's future, suggesting that the company's strategic initiatives and industry conditions could lead to rewarding outcomes for investors. Argus's analysis indicates that Lyft's stock may offer an attractive investment opportunity at its current valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.