Lyft (NASDAQ:LYFT) stock is on the rise Tuesday after KeyBanc analyst Justin Patterson upgraded shares of the ride-sharing company.
Specifically, the KeyBanc analyst upgraded shares of LYFT stock from a “sector weight” rating to an “overweight” rating. To put that in perspective, the consensus rating for LYFT is a “buy” based on 45 analysts’ opinions.
To go along with that, Patterson also set a price target of $24 for LYFT stock. That represents a roughly 56% premium over the stock’s closing price on Monday. For comparison, the consensus price target for LYFT is $17.50 per share.
What’s Behind the LYFT Stock Upgrade?
Here’s what Patterson said in a note to clients obtained by CNBC:
“Ridesharing data appears stable in our Key First Look (KFL) Data sample, with Lyft data actually improving over the course of December […] When we layer this in with aggressive cost-cutting action in recent quarters and an ongoing recovery along the West Coast, we see meaningful opportunity for improvement in Lyft’s EBITDA over the course of 2023.”
To be clear, this doesn’t mean LYFT stock will see guaranteed success in 2023. Patterson does warn that pricing headwinds could be a problem for shares if the economy worsens this year.
LYFT stock is up 1% as of Tuesday morning.
Investors looking for all of the latest stock market news will want to stick around!
We’ve got all of the hottest stock coverage traders need to know about on Tuesday! Among that is what’s happening stocks today, as well as layoffs coming from 3M (NYSE:MMM) and Ford (NYSE:F). You can read up on all that news at the links below!
More Tuesday Stock Market News
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- Ford Layoffs 2023: What to Know About the Latest F Job Cuts
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.