Lyft, Inc. (NASDAQ:LYFT) shares dropped more than 29% on Wednesday following Q1 results, with EPS of ($0.57) coming in worse than the Street estimate of ($0.07).

The company posted a beat on revenue and EBITDA that were around 4% and 280% above the consensus estimates, however, the company’s Q2 EBITDA guidance came in below expectations. The company expects Q2 revenue to be up 27% year-over-year at the midpoint while EBITDA is expected to be down 37% at the midpoint driven by supply-demand imbalance and incremental investments in drivers' supply.

While the stock reaction today implies the street is skeptical about longer-term margins given the potential need for continued investment in supply, the analysts at Deutsche Bank believe this could indeed just be a one-time investment ahead of the demand surge. That said, while there is no denying that the company will benefit from the secular tailwinds of re-opening post-COVID, the analysts think the investments in driver supply could weigh on the margins and therefore lower they lower their price target to $28 from $43, while reiterating their hold rating.