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Investing.com -- Bank of America lowered its price target on Lyft (NASDAQ:LYFT) to $19 from $21 given intensifying competition and uncertainty around autonomous vehicle adoption.
“Waymo’s future launch of freeway rides to the public will likely be a negative for Lyft, but the Street could be overestimating the timeline to public launch,” analyst said.
The brokerage noted Waymo's continued testing of freeway rides in Los Angeles and San Francisco, which could eventually pose a threat to Lyft. However, BofA believes the market may be overestimating the timeline for a public rollout.
Meanwhile, Uber (NYSE:UBER)'s reported development of a Price Lock feature, similar to Lyft’s successful offering, adds to competitive pressure.
Despite these challenges, BofA maintained a Buy rating, saying Lyft remains a long-term beneficiary of AV adoption.
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BofA cuts Lyft price target amid rising competition