UPDATE: UBS Starts Lyft (LYFT) at Buy

UBS analyst Lloyd Walmsley initiates coverage on Lyft (NASDAQ: LYFT) with a Buy rating and a price target of $60.00.

The analyst comments "We rate Lyft shares Buy with a price target of $60/share and see shares benefiting from estimate revisions and multiple expansion as the recovery comes through, driving better profitability. Lyft benefits from a strong post-pandemic recovery, as a pure-play rideshare business, in a stable duopoly market, with limited noise around investment in delivery wars, no exposure to international competition, nor sticky regulation in tougher markets abroad. We think Lyft could lose some modest share to Uber, but this would not be competitive (but mix related) thus margins can still scale. We expect Lyft to see slight multiple expansion, based on historical EV/Rev/growth, which implies a 4x multiple or ~43% upside from today. In our upside case, we forecast faster revenue, which supports a 4.6x multiple, which is 75% upside vs. our downside of 26% (2.9x skew to the upside), using a 2.0x multiple and assuming slower top-line growth."

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 $38.22 yesterday.

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