Lyft made slight gains on Tuesday after a series of positive analyst reviews. Shares rose 1.3% early Tuesday morning after gaining 4.4% on Monday.

When Lyft had its initial public offering at the end of March, only six analysts tracked its shares. Now 22 analysts cover its shares and 13 gave the stock a buy rating, eight gave it a hold rating, and one analyst gave it a sell rating.

In spite of the enthusiastic ratings, Lyft shares have struggled since its IPO in March. On Monday, the stock closed at $60.94 per shares which is lower than its IPO price of $72 per share and opening price of $87.24.

What analysts like about Lyft

While each analyst presented a slightly different view of Lyft, most believe the company has a strong valuation in spite of its recent stock underperformance. Many analysts recommended focusing on the long-term potential of Lyft rather than its recent stock performance.

Unlike rival company Uber, Lyft focuses solely on transportation which many analysts see as an asset. Cowen & Co analyst John Blackledge said that Lyft’s primary focus on transportation allows it to provide a better driver experience.

Another analyst pointed out that while Lyft’s stock valuation is at the bottom of its peer growth, its growth is near the top. This analyst expects that Lyft’s stock will bounce back.

Raymond James analyst Justin Patterson compared the company to the travel site Expedia and said that he expects Lyft to benefit from the increased demand for ride-sharing.

Final thoughts

However, not all analysts were so optimistic about Lyft’s future valuation. Other analysts were concerned that the company’s revenue and share gains would continue to fall. This could hurt the company’s ability to meet expectations on revenue and earnings.

And despite widespread use of the company’s ridesharing platform, Lyft still has yet to turn a profit. And some investors are suing the company, claiming Lyft misled them prior to its IPO.

Plus, Uber recently filed for its own initial public offering which puts added pressure on Lyft. Its IPO should happen sometime in May. Still, the majority of brokerage firms seemed confident about Lyft’s potential and recommend it as a good stock to buy.