On Thursday Bank of America downgraded Lyft shares directly to 'underperform' (from 'buy'), with a target price slashed from $17.5 to $10.5.
The broker justifies its decision by the concerns raised by the development of autonomous driving, and in particular by the growing threat posed by Waymo.
In its view, Lyft's strong exposure to the San Francisco and Los Angeles metropolitan areas makes the VTC specialist far more vulnerable to competition from Waymo than its rival Uber.
While it believes that Lyft could be a beneficiary of the rise of autonomous driving, the analyst stresses that this favorable dynamic will only materialize in the long term.
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