Alex Cho

About the Author Alex Cho

Best tech/finance blogger on TipRanks. Alex Cho is ranked 7th among all financial bloggers, with a sector focus of technology stocks. The research he publishes captures the long-term growth potential of tech franchises, and market valuation. His research recommendations over the span of five-years has averaged into an annualized return of 19.3% across 392 ratings of which 66% were successful. Over his years of publishing, Alex Cho has been an indispensable source of information for an investment minded audience, which is why his lifetime viewership has exceeded ten million in total since 2012, across various media platforms. Furthermore, he’s frequently cited in various local business journals across the United States, and is frequently tagged with the “in-depth” designation on Google News for his public articles. The quality of his research is well known, and is well-respected which is why he’s frequently cited by other authors, journalists, bloggers and experts. Alex Cho was a former founding partner of Alexander & Cohen Capital Management, has worked as a consultant for mid-stage tech companies looking to raise capital or form an exit strategy, with the most recent consultation billed to a client that was generating revenue of $10 million+ in the web domain/registrar segment. Alex Cho is frequently invited to interview members of management at various Fortune 500 tech companies’ due to his outstanding media credentials, and credibility. Furthermore, he frequently attends various tech media events at the request of the event organizers. Alex Cho has a great relationship with Wall Street and Silicon Valley, as well. In the Venture Capital Space, he has sources that are inclusive of VC Partners, and independent research from PitchBook, Mercury Data, eMarketer, MergermarketGroup, and so forth. Anyone facing the public with investment related material needs quality sources, which should be inclusive of insights from Private Equity and various sell-side institutions and debt rating agencies as well (Standard & Poor’s, Fitch, & Moody’s). Alex Cho publishes with the support of Bank of America Merrill Lynch, Morgan Stanley Americas, Royal Bank of Canada Capital Markets, United Bank of Switzerland AG, Barclays Americas, Goldman Sachs, J.P. Morgan, Credit Suisse AG, PiperJaffray, Wedbush Securities, Oppenheimer & Co., Nomura Securities, BMO Capital Markets, Raymond James, Pacific Crest, SunTrust, Mizuho Securities, Deutsche Bank and Canaccord Genuity. Alex Cho attended ASU via the MAPP program with a 3.76 GPA in business-finance. The genius behind Cho has less to do with his academic accomplishments, but rather his ability to navigate, adapt, and improve the quality of his work through all the activities he has engaged. In the past year, Alex Cho has launched a new marketplace service referred to as Cho’s Investment Research. To learn more about this service, or to receive article notifications, be sure sure to subscribe. We provide frequent updates via our Blog Posts, which goes out to our subscribers.

Lyft (LYFT) Stock Looks Like It Can Rally Back to $78, Says Analyst


Lyft (LYFT) stock might have stumbled out of the gate following its IPO since early April. With just a month of trading action, the stock is trading at $58 to $60 in a fairly tight range despite the IPO pricing initially at $78. Typically stocks drop following an IPO with Lyft being no exception.

However, some positive commentary tied to the stock, and on-going revenue growth with gradual improvements in profitability could make this a long-term attractive play. After all, Lyft just had its IPO. Given a number of quarters with some successful execution, and on-going ramp into an open field opportunity in ridesharing, Lyft stock is still poised to grow quite significantly.

With the impending Uber IPO set to take place within days, investors should still consider Lyft as another alternative given Uber’s heightened market valuation (approximately $90 billion), but also over subscribed offering, which will make the IPO a little frothier in terms of valuation before it also compresses. Uber’s basically a bigger version of Lyft chasing after the same rideshare/autonomous market opportunity and losing significant sums of money but growing sales quickly. Uber’s valuation is 5x larger than Lyft’s current market cap of $16.8 billion, hence Lyft’s long-term growth runway might be more attractive given it’s smaller size.

With some of the hype subsided, analysts have also weighed in on Lyft’s stock. Michael Olson from Piper Jaffray initiated coverage at Overweight and $78 price target:

We initiate coverage of LYFT with an OW rating and $78 PT. We believe Lyft will be both a driver and beneficiary of the growth of ridesharing and autonomous tech over the next 10+ years. LYFT may not be the right fit for all investors, given the company’s current materially unprofitable state, but for those with a long-term view, and patience, we recommend owning shares at these levels. We do expect solid near-term top line results, as the company has been gaining market share in recent quarters, but the path to significantly positive net income will be a multi-year journey.

The long-term growth narrative could very well be attractive, as Olson anticipated Lyft’s long-term profitability to trend higher. The analyst goes onto mention, “We believe that scale and improved operating leverage over several years could bring the company to a ~20% EBITDA margin over the long-term (~2023 timeframe).” In the meantime, anticipate a very slow ramp-up in terms of profitability metrics, but perhaps shareholders already anticipate that this will be a cash bleeding operation until Lyft reaches a stable business state.

Lyft has approximately 35% market share in the United States, according to the report which has steadily improved over the past several years despite the presence of Uber. What makes Uber’s valuation significantly larger than Lyft is its international presence along with food delivery via Uber Eats. Lyft hasn’t expanded beyond the United States and Canada and instead doubled-down on the domestic opportunity by expanding its network of drivers in most suburban and urban areas reaching 95%+ of the U.S. population.  goes onto mention, “While Uber clearly has significantly more scale, especially with its international footprint, Lyft is growing more rapidly. We expect Lyft will continue to take market share in the North America ridesharing market over the coming years, unless Uber becomes more aggressive with rider and driver acquisition/incentives.”

Hence, the market opportunity.

Where does the rest of the Street side on Lyft stock? It appears mostly bullish, as TipRanks analytics demonstrate LYFT as a Buy. Out of 20 analysts polled in the last 3 months, 13 are bullish on the stock while 6 remain sidelined and one is bearish. With a return potential of nearly 20%, the stock’s consensus target price stands at $74.06. (See LYFT’s price targets and analyst ratings on TipRanks)

 

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