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Bank of America analysts downgraded Lyft’s (LYFT) stock twice on Thursday.
Lyft’s stock has recently fallen by about 11%, to approximately $11.50. This brings them down to nearly 40% in the last 12 months. The analysts dropped their rating on the company's shares to "underperform" from "buy" and cut their price target to $10.50 from $17.50, which was a bit above the Street's consensus, according to Visible Alpha data.
While most of the analysts tracked by Visible Alpha have neutral ratings on Lyft's shares, the mean target above $16 reflects some optimism, making Bank of America's change stand out.
The bank's analysts cited concerns about Lyft's positioning in autonomous vehicles and "pricing headwinds" even as they cited a solid and growing user base as strengths. "We still see long-term potential for Lyft in [the] AV ecosystem, but given its still-nascent partnerships, we are losing confidence in near-term upside," they wrote.
Lyft announced mixed results for the fourth quarter in mid-February.
Lyft shares fell on the back of trade-policy worries. Uber (UBER), one of its key competitors, saw its stock fall by nearly 6%. Investopedia has a live report of today’s trading.
