Lyft expects 15% annual growth in gross bookings through 2027
Ridesharing name Lyft Inc (NASDAQ:LYFT) projected 15% annual growth in gross bookings, as well as $400 million from its advertising business through 2027 during its first Investor Day. The equity is up 0.9% to trade at $15.84 at last check, after BofA Global Research upgraded the stock to "buy" from "underperform," while Loop Capital raised its rating to "Buy" from "Hold." A handful of other analysts lifted their price targets as well.
On track for its third-straight daily pop, Lyft stock is still struggling with overhead pressure from the 40-day moving average, despite closing above this trendline in the previous session. A familiar floor at the $15 level contained the equity's pullback from a March 21, roughly two-year peak of $20.82. In the last 12 months, LYFT added over 52%.
Options bulls are already responding to today's update, with 17,000 calls traded so far, which is double the intraday average volume. The most active contract is currently the weekly 6/7 16-strike call.
Bullish bets have been popular recently. This is per the security's 10-day call/put volume ratio of 5.27 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 82% of readings from the past year.
Options look like a good way to weigh in on LYFT. The stock's Schaeffer's Volatility Index (SVI) of 55% ranks in the low 4th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.