August 8, 2019 10:45 AM, EDT

Lyft Gains as Analysts Say Results May ‘Win Over Skeptics’

Lyft EarningsDavid Paul Morris/Bloomberg News

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Lyft Inc.’s second-quarter results blew past market estimates and won accolades from Wall Street, as analysts said they now see a clearer path to profitability and a “more rational competitive environment.”

Lyft shares gained as much as 9.3% in New York on Aug. 8, while bigger rival Uber Technologies Inc. rose 7.5%. Lyft indicated that the price war with its competitor — which reports after the market close Aug. 8 — was easing. Yet both stocks are still below the prices at which they went public this year, and investing in the San Francisco-based companies may still require some patience.

“Lyft may not be the right fit for all investors, given the company’s current materially unprofitable state,” Piper Jaffray analyst Michael J. Olson wrote in a note. “But for those with a long-term view, and patience, we recommend owning shares at these levels.”