What happened
Shares of ridesharing service Lyft (LYFT -3.43%) were trading lower on Monday, after two analysts cut their price targets for the stock ahead of the company's first-quarter earnings report.
As of 2 p.m. EDT today, Lyft's shares were down about 10.8% from Friday's closing price.
So what
In a note on Monday, Credit Suisse analyst Stephen Ju cut his price target for Lyft's stock to $75, from $96, while maintaining the equivalent of a buy rating. Ju said that he has cut his estimates for Lyft's rideshare bookings for the remainder of the year. He now expects bookings to fall 91% from 2019, on lower numbers of active riders, less frequent rides, and lower average selling prices.
Image source: Lyft.
SunTrust analyst Youssef Squali is thinking along similar lines. In his Monday note, Squali cut his price target for Lyft to $45, from $74, while maintaining a buy rating.
Squali noted that Lyft announced major cost cuts last week and said that he expected to see "soft demand trends" when the company reports its first-quarter results later this week. He cut his full-year revenue estimate to $2.9 billion, from $4.7 billion, on concerns about weak demand in the current quarter and the lack of visibility as to when the economy will recover from the COVID-19 shutdowns.
Now what
Tech investors should expect Lyft's senior management to address these concerns (among others) when the company reports its first-quarter results after the market closes on Wednesday, May 6.
