UPDATE: Lyft (LYFT) PT Raised to $77 at Wells Fargo on Earlier Recovery than Expected
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Wells Fargo analyst Brian Fitzgerald raised the price target on Lyft (NASDAQ: LYFT) to $77.00 (from $70.00) on the belief that the recovery is occurring slightly sooner than expected.
The analyst reiterated an Overweight rating, stating "We think Rev per Active User (loosely tied to app usage time), will grow ~15% in 1Q21, but active riders will decline due to seasonality and weather conditions. We think the estimated 25% spike in average time per user is likely indicative of (1) resumption of high value use cases such as daily commute, airport rides, and doctor's visits as vaccines roll out and the economy reopens,(2) a substitution of public transportation with ride share, reflecting lingering health concerns among commuters. LYFT's business update on March 2 reported that 1Q21ride volume would be down 1.2% Q/Q if applying Feb's avg. daily volume to March, but did not comment on RPAR. We refine our cost structure and raise our FY22 Contribution and EBITDA margin estimates by 400 bps."
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