UPDATE: Bernstein Starts Lyft (LYFT) at Market Perform

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Bernstein analyst Mark Shmulik initiates coverage on Lyft (NASDAQ: LYFT) with a Market Perform rating and a price target of $48.00.

The analyst comments " LYFT is a ride-sharing company with a high brand-value, though by constraining themselves to the North American market, and exclusively offering only ride-sharing and micro-mobility services, we see a natural limit to their market potential. The good news is that they operate in a market that appears to be rationalizing, which helps drive bottom-line margin improvement, though at the same time we forecast LYFT's U.S. rider penetration growth to slow to 11% Y/Y through 2022 vs. 14% for consensus. Recent activity suggests a pivot is taking place from new rider acquisition to flexing rides/user, price/ride, and take-rate. Our revenue forecast remains steady at 26% Y/Y in-line with consensus, though we see growth as more challenged as there is a limited number of levers to pull if new rider growth slows. Add in pricing power questions, regulatory overhang, and limited optionality and there is equal upside and downside risk to this name."

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 $45.08 yesterday.

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