Outside the Box: Lyft IPO is being priced for perfection — and that’s not realistic

The first big IPO of 2019 is here. This year could set new IPO records (for size and lack of profits), and it all starts with Lyft (LYFT). The ride-hailing company is expected to trade within the next few weeks at a market cap between $20 billion and $25 billion.

At the midpoint of that proposed range, Lyft LYFT, +0.00% earns our Unattractive rating. It shares many of the same characteristics that have led us to warn investors away from other recent IPOs: growing losses, low barriers to entry, poor corporate governance, and an unrealistically high valuation. These factors make Lyft this week’s Danger Zone pick.

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