LYFT stock tumbled in its first month as a public company, but it has eventually caught a break. Last week, the country’s second most popular ridesharing service, Lyft (NASDAQ:LYFT), soared 9.2%.
Now the upcoming first earnings report as a public company on Tuesday could be a key catalyst for the stock.
Analysts are Bullish
The recent rally doesn’t mean that the bad times are over for the ridesharing service. LYFT stock was helped to move higher by bullish analyst notes. Between the company’s expected first report since going public and the upcoming Uber IPO, there are a number of things that can weigh on Lyft stock’s resistance.
Tigress Financial’s Ivan Feinseth commenced coverage of LYFT stock on Tuesday giving it a buy rating because of increasing demand that will most likely help Lyft’s sales in future. Equally, he indicates that there is a big opportunity in the healthcare transportations services that the company can capitalize on.
John Blackledge at Cowen also offered a bullish prediction on the upcoming earnings release, indicating that revenue in the quarter is expected to grow 88% to around $745 million. Blackledge believes that the company’s adjusted loss will be less compared to that of competitors. As a result, Blackledge expects LYFT stock to outperform setting a price target of $77.
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Uber IPO to Deal a Blow
However, Wall Street dismissed the increasing support because in the previous week most of the company’s underwriters were struck with upbeat notes. It turns out that there was bias as the underwriter firms were only interested in turning fortunes of a broken stock.
LYFT stock may also be helped by the fact that the company is about to release its earnings report. With Uber’s IPO inching closer, the week was far from perfect for bulls, and this might be a blow to LYFT stock as investors may consider Uber stock instead. The losing of a lawsuit that was challenging the City of New York’s minimum wage for drivers may also deal a blow to LYFT stock.
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