Lyft: shares rebound; but analysts still 'concerned'
(CercleFinance.com) - Lyft shares rebounded slightly on Tuesday after their heavy sell-off on Monday, although remain well below their initial public offering price.
The stock dropped by 10% yesterday after gaining 8.6% on Friday for its first day of trading. Today the share is currently regaining ground, up 1% at 69,7 dollars, although this is still below its IPO price of 72 dollars.
In a note to clients, analysts at Wedbush said it is "not the time to panic," but conceded that "concerns" remain.
"While we are bullish on the long-term opportunity for Lyft (...), our concerns remain the vague path to profitability and the current valuation with no true public comps," they noted.
"We think it's too early to be over-reactive and believe investors will support shares and be patient with the heavy losses as long as the key growth drivers are present as the company delivers robust results over the coming quarter," they added.
According to Wedbush - which maintains its "neutral" rating on the shares - investors could soon start to feel like they are missing out on the "next Amazon."
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The stock dropped by 10% yesterday after gaining 8.6% on Friday for its first day of trading. Today the share is currently regaining ground, up 1% at 69,7 dollars, although this is still below its IPO price of 72 dollars.
In a note to clients, analysts at Wedbush said it is "not the time to panic," but conceded that "concerns" remain.
"While we are bullish on the long-term opportunity for Lyft (...), our concerns remain the vague path to profitability and the current valuation with no true public comps," they noted.
"We think it's too early to be over-reactive and believe investors will support shares and be patient with the heavy losses as long as the key growth drivers are present as the company delivers robust results over the coming quarter," they added.
According to Wedbush - which maintains its "neutral" rating on the shares - investors could soon start to feel like they are missing out on the "next Amazon."
Copyright (c) 2019 CercleFinance.com. All rights reserved.