Lyft's (LYFT) cost leverage and partnership-driven growth support a constructive risk-reward outlook despite ongoing concerns about organic growth, RBC Capital Markets said.
The investment firm said that management expressed confidence in the durability of its variable and fixed cost leverage and cited opportunities to reduce insurance costs.
Partnerships remain a key growth driver, with the United Airlines (UAL) relationship generating sequential quarter-on-quarter growth, RBC said in a Tuesday note.
The investment firm also noted that DoorDash (DASH) is producing the highest-frequency rider cohort in Lyft's partnership portfolio.
Management also views Waymo's planned expansion of its Nashville service area and vehicle fleet as a positive sign of the partnership's progress, the note added.
RBC maintained its outperform rating and $20 price target on Lyft.
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