Lyft (NASDAQ:LYFT) stock is on the move Tuesday as investors react to a new rating for the ride-sharing company’s shares.
MoffettNathanson analyst Michael Morton is behind today’s news as he downgraded shares of LYFT from a “neutral” rating to a “sell” rating. For the record, the analysts’ consensus rating for LYFT shares is hold based on 32 opinions.
To go along with that downgrade, Morton dropped his price target for LYFT stock from $10 per share to $7 per share. That represents a nearly 26% downside from its previous close. It’s also below the analysts’ consensus price prediction of $13.19 per share.
What’s Behind the Bear Stance on LYFT Stock?
Here’s what the MoffettNathanson analyst said about LYFT stock in a note to clients obtained by MarketWatch:
“In our view, the outlook is a lose-lose for Lyft. The company is beholden to Uber to raise prices, and Uber has recently shown patience in raising prices given its better unit economics from both its wider driven base and more diversified business operations.”
LYFT stock is down 4.4% as of Tuesday morning as investors react to this downgrade. That also has some 453,000 shares changing hands, as compared to a daily average of 13 million shares.
Investors who are looking for more of the most recent stock market stories are in the right place!
InvestorPlace is home to all of the hottest stock market news for Tuesday! Among that is what’s moving shares of Tempo Automation (NASDAQ:TMPO), PetMed Express (NASDAQ:PETS) and VS Media (NASDAQ:VSME) stock today. All of that news is ready to go down below!
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On the date of publication, William White did not have (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.
