Bernstein analyst Mark Shmulik initiated coverage of Lyft with a Market Perform rating and $48 price target as part of a broader initiation of the U.S. Internet sector with a generally positive outlook. The analyst says he sees a natural limit to Lyft's market potential due to constraining itself to the North American market and exclusively offering only ride-sharing and micro-mobility services. The good news, Shmulik says, is that Lyft operates in a market that appears to be rationalizing, which helps drive bottom-line margin improvement, though at the same time he forecasts Lyft's U.S. rider penetration growth to slow to 11% y/y through 2022 vs. 14% for consensus. The analyst adds that there are a limited number of levers to pull if new rider growth slows and, coupled with pricing power questions, regulatory overhang, and limited optionality, there is equal upside and downside risk to this name.