UPDATE: Wells Fargo Starts Lyft (LYFT) at Outperform

(updated to add analyst name, comment)

Wells Fargo analyst Brian Fitzgerald initiates coverage on Lyft (NASDAQ: LYFT) with a Outperform rating and a price target of $60.00.

The analyst comments "Despite the stock’s performance since its IPO, we believe LYFT has opportunities that will bear fruit longer term to move the needle. We see upside potential in LYFT driven mostly by (1) faster-than-expected growth of revenue/active rider, as we think the current share price already reflects a rapid growth rate in number of active riders at current engagement levels, (2) upward revisions in EBITDA and Contribution Margins, driven by improved Ridesharing profitability, and (3) demonstrated profitability and growth of Lyft’s new businesses (bikes, scooters, and multi-modal) into which management has allocated significant capital. We are comfortable that Lyft’s Ridesharing platform can maintain enough market share, vs. larger rival Uber, in key U.S. cities to maintain a high level of utility to both riders and drivers."

For an analyst ratings summary and ratings history on Lyft click here. For more ratings news on Lyft click here.

Shares of Lyft closed at $41.78 yesterday.

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