Analysts on Wall Street Lower Ratings for These 5 Stocks

04. Lyft, Inc. (NASDAQ:LYFT)

Price Reaction after the Downgrade: -0.26 (-2.76%)

Moffett Nathanson, led by analyst Michael Morton, recently revised its stance on Lyft, Inc. (NASDAQ:LYFT), downgrading the stock from Market Perform to Sell. Concurrently, the price target was adjusted to $7.00, down from the previous valuation. As of the latest market data, Lyft, Inc. (NASDAQ:LYFT) stock is currently priced at $9.17, reflecting a decrease of 2.8% following the downgrade. This Sell rating by Moffett Nathanson suggests a more cautious view on Lyft, Inc. (NASDAQ:LYFT) market performance. Investors and market participants are advised to carefully consider the implications of this downgrade, taking into account both the adjusted price target and the associated change in the stock’s market price.

ClearBridge Multi Cap Growth Strategy made the following comment about Lyft, Inc. (NASDAQ:LYFT) in its Q2 2023 investor letter:

“The sale of rideshare provider Lyft, Inc. (NASDAQ:LYFT), similar to our moves in communication services, prunes a smaller position to consolidate the portfolio in our highest conviction ideas. We initially purchased Lyft in May 2021 when rideshare volumes were still depressed due to COVID-19. While Lyft was a clear #2 behind Uber in domestic rideshare, we believed it was a cleaner way to play the U.S. recovery due to the focused nature of its business. However, poor execution and the uneven nature of the U.S. recovery, with West Coast markets where Lyft has historically had greater exposure lagging due to a lack of return to office work, further weakened its market position. In March, Lyft announced co-founder Logan Green would step down as CEO with David Risher, a former Amazon executive, taking his place. While Risher has laid out ambitions to drive Lyft’s market share higher, we believe doing so will require more than a few quarters fix. Furthermore, while the company has looked for areas to right size their cost base, we see necessary investments in price, service levels and product differentiation to drive this turnaround further pushing out the path to improved profitability.”