Lyft (LYFT) is trading 14% below its initial public offering price of $72 per share, Jefferies analyst Brent Thill tells investors in a research note.

The analyst expects the stock to recover as the company "executes and misconceptions clear."

For the stock to work, Lyft must overcome concerns that its growth will be capped as a number two player behind Uber (UBER) and disprove bears who claim the company will never make money, contends Thill.

He believes that doing so will expand the stock's valuation multiple. The analyst continues to like Lyft for its "highly focused approach to solving the problems of personal transportation." Thill keeps a Buy rating on the shares with a $90 price target.

The stock closed Tuesday up $2.04 to $61.83.