INTERNATIONAL - Lyft Inc’s hints that its cut-throat rivalry with US ride-hailing rival Uber Inc is easing may prove bad news for customers but it sent shares in both companies sharply higher on Thursday.
With Uber set to report after Wall Street closes, analysts were excited by Lyft’s 72 percent rise in second-quarter revenue and its assertion higher spend per rider - read higher prices - would pull both third quarter and full-year sales above market expectations.
Finance chief Brian Roberts said 2018 was likely the peak of losses for Lyft and said pricing had become “more rational”, meaning the company should spend less on the constant promotions and incentives it and Uber have used to win market share.
At least nine brokerages raised their price targets on Lyft stock in response, with Credit Suisse the most bullish with a price target of $96.
Shares of Lyft jumped 8 percent to $64.99 in trading before the bell, while those of Uber rose 4.2 percent at $41.35 as traders bet its results would produce a similar message.