Analyst Says Lyft’s IPO Could Be Similar to Snap’s
While many are eagerly awaiting Lyft to start trading in the market on March 29th, there is one
analyst who has said some cautious things about the ride hailing company’s IPO.
According to the analyst who specializes in tech listings, Rett Wallace, the chief executive officer of Triton Research Inc., both Snap and Lyft look similar because “both firms face competition from significantly larger rivals and they both could have disclosed more data to potential buyers.”
According to Wallace there was “almost nothing” in the company’s filing to assess the business.
“Lyft is even less differentiated relative to Uber than Snap was to Facebook,” Wallace said in a phone interview with Bloomberg. “And Lyft is even playing it the same way as Snap did — let’s just look at the top line and ignore the profitability story and not give investors the metrics they need to forecast the future.”
“If they had given us more transparency, their model confidence would have gone up,” Wallace said. “However, telling me about your mechanics and your mechanics being good are separate but related points.”
Shares of Snap have plummeted since it went public in 2017.
Lyft did get a “buy” rating however from D.A. Davidson analyst Tom White.