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Stock impact report

Wedbush downgrades Lyft on autonomous vehicle disruption risk [Yahoo! Finance]

Lyft, Inc. - Class A (LYFT) 
Last lyft, inc. - class a earnings: 2/11 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
The firm also lowered its price target on Lyft to $16 from $20. In a note led by analyst Scott Devitt, Wedbush argued that investors will increasingly focus on “the timeline in which AVs will expand to a greater share of consumers and the role that 3P distribution platforms like Uber and Lyft will play as the industry evolves.” While Wedbush acknowledged the near-term financial impact may be limited, it expects autonomous vehicles to disrupt the current model over time. “In our view, Lyft is most at risk to the impact of AV disruption given the company's exposure to the U.S. ridesharing market and undiversified offering mix,” Wedbush said. The firm added that although Lyft could pursue a niche role in the AV ecosystem, “we think AV operators will opt for more 1P distribution,” leading Wedbush to believe “the market is underestimating the negative terminal value impact that AVs may have on Lyft's DCF value.” Wedbush also flagged weaker confidence in Lyft's growth outlook. Ex Show less Read more
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