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- Lyft shares touched a record low on Friday morning after its ride-hailing rival Uber filed to go public.
- Uber is seeking a valuation of up to $90 billion, down from the $100 billion that was previously floated.
- Lyft was down as much as 3% on Friday morning.
- Watch Lyft trade live.
Lyft touched a record low Friday morning after its ride-hailing rival Uber filed to go public.
Lyft shares fell more than 3% early Friday, touching a low of $54.31 apiece, after Uber’s S-1 filing said it was seeking a valuation of up to $90 billion. Uber was previously expected to seek a valuation of up to $100 billion.
Friday’s selling has Lyft shares now down 25% from the $72 where its initial public offering priced, and 38% below its stock-market-debut price of $87.24.
The fresh low comes just days after the nearly month-long quiet period for the banks that underwrote Lyft’s March initial public offering ended. Analysts from those banks, and the majority of Wall Street, are bullish on Lyft, with an average price target of $75.62, according to Bloomberg data. Of the analysts covering the stock 14 say "buy," eight suggest "hold," and just one reccomends "sell."
"We think Lyft has the hallmarks of an attractive long-term growth investment, including a large market opportunity with an attractive duopoly industry structure, a strong value proposition that should get better with scale, and a business model that holds solid room for upside," Cannacord Genuity analyst Michael Graham said Tuesday.
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Source: Business Insider – jgarber@businessinsider.com (Jonathan Garber)