Lyft is having a messy first few days of trading

Lyft’s early days of trading as the first public ride-sharing company have been pretty messy.

Shares fell as much as 3% Tuesday after swinging between gains and losses for most of the morning. On Monday – its first full day of trading on the Nasdaq – Lyft tanked nearly 12% after an investment firm came out with a lukewarm “neutral” rating.

And in its trading debut on Friday, Lyft surged out of the gate before closing out the session on its lows. Shares turned negative in after-hours trading.

Analysts are generally concerned about Lyft’s uncertain path to profitability, as well as the competition Uber poses once it hits the public market. Other ride-sharing players throw more uncertainty into the mix.

Michael Ward, an analyst at Seaport Global, became the latest analyst to voice a cautious view on the name on Tuesday. He initiated his coverage with a “sell” rating.

“While we believe the ridesharing market will continue to grow and expect LYFT to be a prime competitor, in our view, current valuations reflect an overly optimistic view of consumer behaviour in the US,” said Ward.

Lyft shares would have to drop around 40% from current levels to reach Ward’s price target of $US42.

Now read more Lyft coverage from Markets Insider and Business Insider:

Lyft shares.Markets InsiderLyft shares.

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