Morgan Stanley expects Lyft and Uber to grow in long term

According to analysts, investors should focus on whether UBER (and LYFT) can achieve multi-year rideshare top-line guidance by 2023. 

Representatives of Uber said that their forecasts remained mostly unchanged. However, the price target cuts were affected by the company's lower performance compared to the peers. In addition to this, a shift in valuation methodology from sum-of-the-parts to a regression based on peer growth/margins also influenced the cuts. 

As reported by LYFT, they are updating the model for calculating Q2 2022 earnings. The company expects revenue to grow about 22% from 2021 to 2024. Earlier, LYFT forecasted revenue growth of about 26%. Similar to UBER, LYFT is changing its valuation methodology to a regression based on peer growth/margins, assessing the company-wide profitability.