Lyft's Proximity to the Gig Economy Raises Its Value, Analyst Says

March 22, 2019

By Chloe Aiello

Lyft's strength as it approaches its public debut is its proximity to the gig economy, Tom White, senior research analyst at D.A. Davidson told Cheddar.

"There's scarcity value for publicly-traded companies that kind of have exposure to this gig economy," White said. "There's some other publicly traded companies that have some exposure to gig economy-type dynamics, but as a pure play on the gig economy, yes, definitely [unique]."

Lyft isn't scheduled to list on Nasdaq until the end of March, but White's firm D.A. Davidson has issued a "Buy" rating on the ride hailing company this week and set a price target of $75. Lyft's price range is expected to fall between $62 and $68 per share when it debuts, and it is seeking a valuation of $23 billion.

"The broader opportunity is transportation-as-a-service ー you know, $1.2 million in U.S. spend on transportation," White added.

But Lyft isn't the only gig-economy adjacent, transportation company angling for investor dollars. Lyft's much larger rival Uber is also planning a public offering this year. White said Uber's intention to list in April hasn't dampened enthusiasm for Lyft's roadshow, which kicked off this week ー it is already oversubscribed, Reuters reported.

For full interview click here.