Lyft Inc. (LYFT) - Get Report shares edged higher Friday after analysts at Wells Fargo initiated coverage on the ride-hailing group at "outperform", arguing it was well-placed to take on rival Uber Technologies (UBER) - Get Report

Wells Fargo analyst Brian Fitzgerald placed a $60 price target on Lyft, alongside his outperform rating, citing faster-than-expected revenue growth from active riders, improving profitability and the profit growth potential from the group's new business units such as bikes and scooters. 

"Despite the stock's performance since its IPO, we believe LYFT has opportunities that will bear fruit longer term to move the needle," Fitzgerald said. "We are comfortable that Lyft's Ridesharing platform can maintain enough market share, vs. larger rival Uber, in key U.S. cities to maintain a high level of utility to both riders and drivers."

Lyft shares were marked 1.2% higher at the start of trading Friday to change hands at $42.37 each, a move that would still leave the stock some 41% south of its April 1 IPO on the Nasdaq. 

LYFT posted a loss of 68 cents per share for the quarter ending in June, but said revenues rose 72% from the same period last year to a forecast-beating $867.3 million. Lyft said revenue per rider rose 22% from last year to $39.77, while the number of overall customers surged 41% to nearly 22 million in its first quarterly report as a public company.

TheStreet's founder, Jim Cramer, however, isn't as convinced that the stock is ready to recover from its IPO tumble.

"It opened in the 80s, it's all the way down, people have nothing but losses on it," Cramer told a caller on his Mad Money program last night. "It may become a tax-loss play between now and the end of the year."