Wedbush Lowers Price Target On Lyft Stock But Still Sees 21% Upside

Wedbush Securities analyst Daniel Ives on Tuesday said he continues to see upside in Lyft Inc.'s LYFT stock despite the mixed earnings results for the fourth quarter.

The Analyst Rating: Ives has an Outperform rating on the stock and reduced the price target from $77 to $50, still implying a 21.35% upside over last closing price.

The Analyst Thesis: Lyft's first-quarter guidance is a “disappointment and will weigh on shares” but the worst of Omicron appears to be in Lyft's rear-view, the analyst noted, adding that he expects demand to improve after the first quarter. 

The analyst also noted Lyft's plans to continue investing in new product innovations, saying these would "create more touchpoints for customers to improve the top of funnel and create a more sticky network as well as improve the experience for riders and drivers."

Here are the key details from Lyft's Q4 Results:

• Revenue of $969.9 million, against the analyst consensus of $938.86 million, as per data from Benzinga Pro.
• Adjusted EPS at 9 cents in line with Street expectations.
• Guidance for Q1 revenue to be between $800 million and $850 million, which would be well below the Street estimates of $984 million, Ives noted.

What Else: Lyft rival Uber Technologies Inc UBER is scheduled to report fourth-quarter earnings on Wednesday after the bell. 

Price Action: Lyft shares closed 5.4% higher at $41.2 a share on Tuesday and were trading down 5.5% lower in after-hours.