Piper Sandler analyst Alexander Potter downgraded Lyft (LYFT) to Neutral from Overweight with a price target of $31, down from $63.

Due to the COVID-19 pandemic, the analyst has "less faith in the attractiveness of the ride-hailing theme" over the next year and beyond. He is encouraged by management's aggressive actions on cost containment and cash preservation, but thinks health concerns may discourage riders from quickly returning to the Lyft platform.

It now appears that higher demand in March was a "headfake," likely driven by pre-shutdown Costco runs or last-minute commutes, Potter tells investors in a research note post Lyft's Q1 results.