Is Lucid Still A Buy? Analyst Cites 'Best-In-Class' Technology But Cuts Price Target
Portfolio Pulse from Anan Ashraf
Stifel lowered its price target on Lucid Group Inc (NASDAQ:LCID) from $5 to $4 but maintained a 'hold' rating, citing 'best-in-class' technology and potential positives like a lower-priced Lucid Air sedan and focus on cost control. Despite these positives and plans for the Gravity SUV production, concerns over cash burn prevent a 'buy' rating. Lucid reported a Q4 revenue miss and a loss of 29 cents per share, with total costs of $894 million. The company aims to produce 9,000 vehicles this year, up from 8,428 in 2023. Lucid shares closed up 4.3% on Monday and rose 1.59% in Tuesday's premarket, but are down 24.1% year-to-date.
February 27, 2024 | 10:36 am
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Stifel lowered Lucid's price target to $4 from $5 but maintained a 'hold' rating, highlighting the company's strong technology and potential despite concerns over cash burn and a Q4 revenue miss.
The reduction in price target by Stifel reflects a cautious but not entirely negative outlook on Lucid, balancing the company's technological strengths and product potential against financial concerns. This mixed view, along with the recent performance of Lucid's stock, suggests a neutral short-term impact on the stock price. The importance is high due to the direct financial implications and analyst rating, but the confidence is not at maximum due to the unpredictable nature of market reactions to analyst ratings and financial reports.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100