Lyft IPO Forecast: Indicators Show ‘Buy’ For Lyft Even Before The IPO

Lyft or Uber IPO? Reasons Why Lyft Might Beat Uber in the IPO Race: Investors previously considered that investing in Uber’s upcoming IPO would make a more profitable and more reliable investment with significantly mitigated risks in oppose to its “smaller” competitor, Lyft, it now appears that there are more than several reasons why Lyft IPO may beat Uber initial offering in the long run.

According to Stephen Karmazyn from Profitconfidential, both ride-sharing IPOs are exciting, and I believe that both have the ability to do well. But if I had to pick only one, I would support Lyft for many reasons, one of the most important being that the company simply has more room to grow moving forward compared to Uber. That said, this is not a future buy recommendation, and it remains vital that you do your own research ahead of time.

First Rating For Lyft IPO

According to MarketWatch, Lyft IPO gives investors the opportunity to invest in company that’s growing fast and capturing share from rival Uber, analyst says. Lyft Inc. ‘s initial public offering will give investors their first chance to invest in a ride-sharing service that’s growing fast and capturing significant market share from its bigger rival Uber.

That’s the view of D.A. Davidson analyst Tom White in a note to clients initiating coverage of the stock with a buy rating and price target of $75, or 10% above the top end of the company’s IPO price range of $62 to $68. Lyft is expected to price the deal next week and it’s already oversubscribed, according to the New York Post.

Lyft has grown its market share to 39% from 22% in the past two years, benefiting from the public relations and operational troubles at Uber, which is also planning to go public this year.

Lyft IPO Brings a “Unicorn” Status to the Rideshare Startup

Lyft managed to double its profits in the course of 2018 and in oppose to the previous year 2017. While Lyft recorded 1 billion dollars in 2017, the company reported 2.2 billion dollars only a year later.

One of the many reasons why Lyft could be a better investment in oppose to its direct competitor, Uber, is the fact that Uber appears to be “bloated”.

Uber is also having regulatory issues, related to the fact that Uber is available in around 70 countries across the globe, while Lyft is focused on the US and Canada, having a narrowly determined targeted audience and having to deal with a leaner business model in oppose to Uber.

Since Lyft is focused on the US, the company has made sure that they are most commonly dealing with an environment which is business friendly in most cases.

Moreover, now that Lyft is a publicly traded company with its own IPO, the startup is getting more on its value, while Uber is yet to issue their IPO, that way allowing Lyft to take a head start.

In addition, Lyft also started to invest in self-driving cars, much like Uber Eats, following its competitor step-by-step in hope to surpass it with a similar but leaner business model.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
Aamir Kapoor is a fintech writer specializing in cryptocurrency and blockchain. He has a background in finance and banking and was a researcher.