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RBC downgraded Lyft stock to “underperform”

RBC today downgraded LYFT Inc (NYSE:LYFT) to “sector perform” from “outperform”, while cutting its price target nearly in half from $30 to $16. The analyst is less bullish following a driver supply analysis, and noted that ridesharing competitor Uber (UBER) has more “structural advantages” over Lyft. Out of the gate this morning LYFT is 6% lower to trade at $13.11.

This is LYFT’s second downgrade in as many weeks. On Sept. 26, UBS downgraded the stock after a survey showed drivers and consumers preferred Uber. Despite today’s drop, LYFT is heading for its first weekly win since Sept. 9. Year-to-date, LYFT is 74% lower, with the shares’ 80-day moving average containing a rally last month. 

Options traders have ramped up there bearish positions since our last coverage, too. Lyft stock’s 10-day put/call volume ratio of 2.45 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) now ranks in the 99th percentile of annual readings. For context, that ratio was 1.02 on Sept. 26. 


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