(benzinga.com) – Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
We surveyed a group of over 600 investors on whether they think shares of LYFT Inc (NASDAQ:LYFT) will reach $75 by 2022.
Lyft Stock Forecast
Lyft operates a peer-to-peer marketplace for on-demand ride-sharing in the United States and Canada. Lyft’s marketplace lets drivers provide their transportation services to riders.
The ride-sharing giant was incorporated in 2007 and is headquartered in San Francisco.
Lyft’s 52-week low of $15 occurred during the onset of the coronavirus pandemic in March 2020. Shares of Lyft were trading around $45 at time of publication.
For ride-sharing customers, Uber Technologies Inc (NYSE:UBER) and Lyft can be viewed as perfect substitutes for one another. Both companies offer services in the US and Canada, and are competing to become the largest taxi alternative service provider. Only Uber offers global ride-sharing services in the European Union, Africa, Asia among other global markets.
In November, a majority “yes” vote on Prop 22 in California recently exempted both Uber and Lyft from classifying their drivers as employees. This was seen as a big win for both companies which, as a result, are not required to offer employee benefits like health care to their drivers.
Around 56% of Benzinga investors told us Lyft will indeed reach $75 per share by the end of 2021.
See Also: How To Buy Lyft Stock.
Traders and investors who participated in our study told us Lyft’s share price will increase as the pandemic fades this year, dramatically increasing demand for ride-sharing services. They also said many people have lost their automobiles due to financial difficulties and are relying more on driving companies and delivery services in 2021.
The Prop 22 outcome in California was also cited by respondents as a win for Lyft: If it had to reclassify workers as employees, Lyft would have to cover benefits such as paid sick days and health insurance when it is already struggling to make a profit.
On the contrary side, some respondents noted that Lyft is not yet profitable, and also that COVID-19 is far from over and could continue to dampen the need for rides deep into the year.
This survey was conducted by Benzinga in January 2021 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 600 adults.