After having a hard time to stay above or around the opening IPO share price, Lyft published their first earnings and financial report after going public on Nasdaq under the thicker LYFT.
Despite losses that could be freely described as “heavy” and even “stubborn”, Wall Street analysts are positive that Lyft is slowly but steadily thriving towards becoming a profitable company.
Lyft Reveals First post-IPO Financial Report, Wall Street Analysts Optimistic
Lyft published their first report after the initial public offer went live on Nasdaq, at the same time, the report represents the first quarter company earnings for 2019.
Known as yet unprofitable, Lyft is still recording losses in Q1 financial report for 2019, however, Credit Suisse claims that the report is the first step towards having Lyft becoming a profitable company.
Additionally, UBS considers that Lyft might as well become profitable in the long run due to the fact that the ridesharing market still has a lot of room for secular growth.
UBS further added that the ridesharing market will eventually become more profitable for the company within the sector as the market is maturing and gaining on significance in the market and society as well.
Stressing out that Lyft lost over 6.2 billion dollars in market value, JMP Securities claim that investors should take advantage of low share price while buying LYFT shares at low price is still possible.
Additionally, JP Morgan believes that in accordance with Lyft’s latest report, 2019 should be the peak of losses for the company.
Moreover, Lyft is showcasing improving losses in the core of the ridesharing business model, also increasing revenue estimates for the period between 2019 and 2020 by 3% to 4% after Lyft Q1 report.
More analysts and investors besides JMP Securities and JP Morgan are giving Lyft shares “buy” and “outperform” rating.