Piper Sandler raises Lyft shares target to $22 on strong consumer ties

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On Friday, Piper Sandler displayed confidence in Lyft Inc. (NASDAQ:), increasing the share price target to $22 from the previous $17 while maintaining an Overweight rating. The firm’s positive outlook is based on Lyft’s significant revenue connection to the robust U.S. consumer market and the company’s status as a ride-hailing pure-play, which is deemed safer in potential economic downturns.

The analyst from Piper Sandler highlighted the healthy state of the marketplace, driven by growth in both demand and supply. New products are also anticipated to contribute to incremental bookings. The firm expressed approval of Lyft’s management’s efforts to enhance transparency by revealing new performance metrics such as bookings, riders, and rides, which are expected to bolster investor confidence.

Furthermore, the analyst noted that Lyft’s valuation stands at a notable discount when compared to its peer, Uber Technologies Inc . (NYSE:NYSE:). This valuation gap is seen as an opportunity for investors. The upcoming Analyst Day in June is set to provide further insights into Lyft’s strategic direction, which may influence market perceptions and investment decisions.

Lyft’s focus on providing detailed metrics is part of a broader strategy to improve visibility and investor relations. The ride-hailing company’s decision to disclose bookings, riders, and rides is a move towards greater transparency, which could potentially lead to increased investor trust and a more favorable view of the company’s stock.

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