A day after dropping below its initial public offering price, Lyft Inc. shares were volatile Tuesday as more skeptics emerged on Wall Street.
Investors in the ride-sharing service “need to take a big leap of faith” to justify its current valuation, Seaport Global analyst Michael Ward told clients as he gave Lyft its first sell rating. The current valuation reflects an “overly optimistic view of consumer behavior” in the U.S. and expectations that millennials will forgo owning their own cars, Ward said. His price target on the stock is $42, or 39 percent below the last closing price.
