Lyft (LYFT) Wins an Upgrade From Rothschild Redburn as Its Price Target Triples

Lyft, Inc. (NASDAQ:LYFT) is one of the best low priced technology stocks to invest in. On June 17, Rothschild & Co Redburn upgraded Lyft, Inc. (NASDAQ:LYFT) to Neutral from Sell and raised its price target to $22 from $7. The firm cited Lyft’s growing share buyback commitments.

Rothschild Redburn said the case for upgrading was supported mainly by Lyft’s improving cash generation, strong balance sheet, and low capital intensity. The firm said these factors gave it more confidence in the company’s ability to keep returning cash to shareholders.

On why they carried out the reassessment, Rothschild Redburn’s analysts said Lyft’s decision to authorize an additional $1 billion in share buybacks alongside its full-year results was the trigger. In fact, Rothschild Redburn expects Lyft to keep buying back stock going forward, a belief founded on the company’s financial profile, including a free cash flow yield of about 21% and a balance sheet where cash on hand exceeds total debt.

Independent of the analyst action, on July 7, Lyft announced that Senthil Padmanabhan will join the company as Chief Technology Officer. The tenure will officially start later this month on July 20.

Padmanabhan joins from eBay, where he most recently served as Vice President of Engineering. In this role, Padmanabhan earned the title of Technical Fellow and was responsible for scaling the company’s core engineering platform, applications, and infrastructure.

Lyft, Inc. (NASDAQ:LYFT) is a ridesharing company. It operates a peer-to-peer marketplace for on-demand transportation services in the United States and Canada, enabling consumers to contact drivers, arrange meeting points, and reach destinations through a smartphone application.

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