Lyft Stock Skids After Analysts’ Double Downgrade

Shares of Lyft (LYFT) dropped Thursday as Bank of America analysts gave the ride-hailing company the dreaded double downgrade. 

Lyft stock was recently down about 11% to roughly $11.50, leaving them down nearly 40% over the past 12 months. The analysts dropped their rating on the company’s shares to “underperform” from “buy” and cut their price target to $10.50 from $17.50, which was a bit above the Street’s consensus, according to Visible Alpha data.

While most of the analysts tracked by Visible Alpha have neutral ratings on Lyft’s shares, the mean target above $16 reflects some optimism, making Bank of America’s change stand out. 

The bank’s analysts cited concerns about Lyft’s positioning in autonomous vehicles and “pricing headwinds” even as they cited a solid and growing user base as strengths. “We still see long-term potential for Lyft in [the] AV ecosystem, but given its still-nascent partnerships, we are losing confidence in near-term upside,” they wrote. 

Lyft reported mixed fourth-quarter results in mid-February.

Shares of Lyft fell as markets were under pressure due to trade-policy concerns. Uber (UBER), a key peer, saw its stock lose nearly 6%. You can read Investopedia’s live coverage of today’s trading here.