After hosting investor meetings with management, JPMorgan analyst Doug Anmuth recommends buying shares of Lyft (LYFT) on the "increasingly rational" ridesharing industry as well as the company's improving profitability.

Management's overall tone was very confident around the easing of the competitive environment in U.S. ridesharing, core ridesharing losses improving, ongoing leverage in insurance costs, and the "high-growth, high-margin" revenue opportunities in Lyft Business, Anmuth tells investors in a research note.

Further and importantly, on its earnings call last night, Uber (UBER) echoed Lyft's comments on the more favorable operating environment in the U.S., adds the analyst.

He keeps an Overweight rating on Lyft with a $86 price target, suggesting a 50% potential upside. The stock closed yesterday down $1.43 to $54.83.