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The deployment of vaccines could boost ride-hailing company Lyft, according to Wedbush Securities, which raised its price target to $85 from $67.42 on Tuesday.
Analyst Dan Ives wrote in a note: “We continue to believe the ride-sharing stalwarts Uber
UBER,
and Lyft
LYFT,
are well-positioned to see a springboard of consumer demand bounce back as a vaccine gets deployed to the masses by this summer, and more start to return to the office and traveling rebounds significantly.”
Companies such as Uber and Lyft have suffered, along with transport operators, as people stayed at home to avoid catching COVID-19. But as more vaccines are deployed, travelers may prefer ride-hailing companies over a return to public transport.
Read: Uber to label U.K. drivers as workers, provide minimum wage, holiday pay and pensions
Ives believes Lyft is a core recovery name and he predicts an economic rebound into the second half of 2021 will change the growth paradigm as more investors start to revisit the Lyft story.
He wrote: “We believe there are a handful of disruptive tech names that play into this theme and should be firmly on investors’ radars. One of our favorite plays on this front is Lyft as we believe a rebound in ride-sharing metrics over the coming year, coupled by a business model on a clearer path to profitability will result in shares moving much higher during 2021.
“In a nutshell, with a quicker trajectory to profitability and the Street craving for ‘reopening plays,’ Lyft now finds itself on the precipice of a demand snapback into the rest of 2021 after navigating some dark days over the past year.”
