On Friday, the Lyft stock forecast was trading lower as an additional analyst pointed out that Uber UBER –5.58% Technologies is becoming an increasingly formidable competitor.
RBC analyst Brad Erickson revised his recommendation on Lyft stock forecast on Friday, moving them from Outperform to Sector Perform. He reduced his price estimate from the former $30 to the current $16.
Effect on Lyft Stock Forecast
His line of thinking is straightforward: the level of competition that Lyft faces from Uber (UBER) has increased, and the company’s long-term profit ambitions constrain its capacity to invest money and raise its market share .
Erickson’s study of 400 trips revealed that, on average, Lyft Inc ( NASDAQ:LYFT ) ‘s pickup times were 10% slower than Uber’s. This is a reversal from the findings of Erickson’s studies conducted in July, March, and October 2021, in which Lyft was shown to be quicker. RBC’s calculations show that there has been just one other case in which Uber’s pickup time has been faster than Lyft’s since both firms went public.
He claimed this “may finally be manifesting in providing UBER a structural ride conversion advantage.” “This could signal that Uber’s greater driver supply rebound…could finally be manifesting in giving UBER a structural ride conversion advantage.”
RBC’s conclusion was questioned by Lyft, who stated that the sample size employed by the company...
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