Arete downgraded Lyft (LYFT) to Sell from Neutral with a price target of $10, down from $19. The firm believes Uber (UBER) is forcing Lyft to “sacrifice” margins in order to maintain growth. Greater competition has exposed how vulnerable Lyft is to Uber copying its innovations, reducing prices and “stealing away its key partners,” the analyst tells investors in a research note. Arete sees downside risk to Lyft shares and expects the company to rescind its mid-term gross bookings growth target.
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