Lyft’s Hold Rating: Balancing Platform Improvements with Pricing Challenges

Needham analyst Bernie McTernan has reiterated their neutral stance on LYFT stock, giving a Hold rating today.

Bernie McTernan has given his Hold rating due to a combination of factors impacting Lyft’s performance. While the company shows no signs of consumer weakness and maintains healthy trends similar to other areas in the real-time marketplace, there are concerns regarding pricing. The competition with Uber and a negative mix shift are creating a headwind for bookings, which affects the estimates negatively.
Despite these challenges, Lyft is making strides in improving its platform. The company has achieved record-high driver supply, increased ride demand, and better ETA performance, contributing to a more balanced marketplace. These improvements are positive, but the pricing issues still weigh heavily on the overall outlook, justifying the Hold rating.

According to TipRanks, McTernan is a 4-star analyst with an average return of 3.3% and a 48.62% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, thredUP, and eBay.