Lyft (NASDAQ:LYFT) shares gained Tuesday after the ridesharing company announced a new CEO and said its cofounders would step down from their current positions.
Former Amazon executive David Risher will begin as CEO on April 17 as Logan Green steps down from the position to serve as chair on the board. John Zimmer will serve as vice chair on the board, transitioning out of his president role on June 30.
Several Wall Street analysts praised the company's decision to appoint Risher, but wondered why the move did not happen sooner.
Wedbush Securities analyst Dan Ives said the move is the "right strategic move," but it should have happened last year, given the company has been a "train wreck" the last six months, citing its weak 2023 guidance.
"Mr. Risher has his work cut out ahead as we believe all options are now on the table for Lyft including a potential sale with a new CEO in the seat," Ives wrote in an investor note.
Ives has a neutral rating and per-share price target of $13 on Lyft.
Bank of America analyst Michael McGovern, who has an underperform rating on Lyft and per-share price target of $10, noted the change in management should be viewed as a "fresh, customer-focused perspective" that can help the company in its battle against Uber.
McGovern said Risher is likely to be a "customer-obsessed" focus to Lyft, which could mean lower prices for rides, better driver incentives and better attention to detail.
LYFT shares gained 57 cents, or 5.9%, to $10.17.
Related Stories
