Can Uber and Lyft Shift Out of Neutral?
The good news for beleaguered Lyft (NASDAQ: LYFT) and Uber (NYSE: UBER) investors is that an analyst is initiating coverage of the ride-hailing duopoly. The bad news is that MKM Partners is rolling out coverage with neutral ratings on both stocks. MKM Partners is slapping a price target of $32 on Uber and $45 on Lyft.
The new price goals are much lower than each stock's IPO price. Uber went public at $45 in May. Lyft hit the market at $72 two months earlier. Thankfully for investors thinking about initiating a position in one or both companies, the new analyst price targets offer some implied upside from current levels, with both stocks hitting new all-time lows on Wednesday. MKM Partners' price goals are 10% ahead of where Uber closed on Wednesday and 17% above where Lyft is currently perched.
At a time when there has been little to get excited about either company for existing shareholders, this will have to do as a relative positive development.
Source Fool.com
