Canaccord downgrades Lyft, Uber on autonomous vehicle uncertainty

Canaccord last night downgraded Lyft (LYFT) to Hold from Buy with a price target of $14, down from $22, after assuming coverage of the name. The firm also downgraded Uber (UBER) to Hold with a price target of $84, down from $90. Lyft’s “future could be bright,” providing value add in the autonomous vehicle world through hybrid human-robot networks, strong on the ground operations, and other tactical elements, the analyst tells investors in a research note. However, an alternative scenario is also plausible, where a world dominated by a few autonomous vehicle “behemoths” control the value chain and leave Uber and Lyft “reflecting on the golden days of the past,” contends Canaccord. The firm believes the outcome “is truly unclear.” It does expect continued growth “for now,” saying both companies have strong service platforms and continue to grow ride-share. Canaccord’s near-term concern is multiple compression. It sees uncertainty and potential for “rapid disruption” as the autonomous vehicle market crystallizes.