Investors witnessed a significant uptick in Lyft, Inc. (LYFT) and DoorDash, Inc. (DASH) stocks
Analyst Brad Erickson’s upgrade of Lyft from Sector Perform to Outperform, accompanied by a raised price target from $17 to $23, signaled a bullish outlook. Erickson attributed Lyft’s improved execution in its core business as foundational to his thesis, fostering scalability and marketplace efficiency crucial for expanding into down-market products. He highlighted Lyft’s ability to manage surge pricing effectively and expressed confidence in its 2024 EBITDA estimates, considering factors like insurance costs and driver incentives.
Furthermore, Erickson’s assessment of DoorDash’s performance led to its upgrade from Sector Perform to Outperform, with a revised price target of $175, up from $130. He underscored DoorDash’s resilience in sustaining order growth, driven primarily by frequency, and emphasized the potential for strategic partnerships, including with Lyft, to drive incremental orders and bolster its loyalty program.
In response to these upgrades, LYFT shares surged by 4.98% to $17.17, while DASH shares rose by 4.73% to $133.49, reflecting investor confidence in the companies’ growth prospects and strategic initiatives.
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