Lyft Shuffes Management: Analysts Address Whether This Is A 'Positive' Change

Shares of Lyft Inc (NASDAQ: LYFT) jumped in early trading on Tuesday, after the company said its co-founders, Logan Green and John Zimmer, would transition to non-executive roles.

• DA Davidson analyst Tom White maintained a Neutral rating and price target of $12.50.
• Bernstein analyst Nikhil Devnani reaffirmed a Market Perform rating and price target of $12.00.

Check out other analyst stock ratings.

DA Davidson

• The co-founders stepping aside as CEO and President “will prove to be a net positive for LYFT shares over the next 12-18 months,” White said in a note.
• David Risher, who has served at Microsoft Corp (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN), will become CEO.
• While it is “too early” to estimate the impact of this decision, it could prove positive “if it signals an increased willingness to broaden LYFT’s strategic aperture a bit in areas such as product strategy (maybe delivery?), partnerships, or other ways to create value for equity holders,” the analyst stated.

Bernstein

• Given recent stock performance and challenges, the latest change to in the management team “is understandable,” Devnani said.
• “This can be a positive change for the company as it looks to get back on track after a tough 2022,” the analyst wrote. He added that Wall Street will be interested in knowing the new CEO's approach to gaining a competitive edge versus Uber Technologies Inc (NYSE: UBER) and “getting the business to sustainable, positive FCF.”

LYFT Price Action: Shares of Lyft jumped by 6.82% to $10.26 at the time of publication Tuesday.