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On Friday, Benchmark analysts maintained a Buy rating and a $5.00 price target on Lucid Group Inc. (NASDAQ:LCID), expressing confidence in the electric vehicle maker’s growth prospects under its new leadership. Currently trading at $2.14, the stock has analyst targets ranging from $1 to $5, with InvestingPro data showing two analysts recently revising their earnings estimates upward. The endorsement follows a recent conversation with Lucid’s newly appointed Interim CEO, Marc Winterhoff, and CFO, Taoufiq Boussaid.
Winterhoff, who has been serving as Lucid’s COO since December 2023, steps into the CEO role as the company embarks on a strategic transition aimed at scaling up sales and manufacturing capabilities through 2025. According to InvestingPro analysis, Lucid maintains a strong financial position with more cash than debt and a healthy current ratio of 4.18, providing flexibility for its expansion plans. The previous CEO, Peter Rawlinson, will continue to contribute to Lucid as an Advisor to the Chairman of the Board for a 24-month tenure.
Benchmark’s analysis suggests that Lucid is entering a new phase with a focus on expanding its scale and enhancing cost efficiencies. The company has demonstrated strong revenue growth of 35.71% over the last twelve months, though InvestingPro data indicates challenges with gross profit margins. This strategic shift comes in anticipation of the company’s upcoming midsize vehicle, which is expected to begin its standard operating procedure (SOP) in late 2026. The firm’s goals for the year include increasing sales, improving manufacturing efficiencies, and boosting brand awareness.
Looking further ahead, analysts at Benchmark believe that Lucid’s profitability will be significantly bolstered by the introduction of a lower-cost midsize platform, priced below $50,000, and through potential technology licensing agreements. Lucid has indicated ongoing discussions with several original equipment manufacturers (OEMs) regarding such agreements, which could further enhance the company’s revenue streams and market position. For deeper insights into Lucid’s financial health and growth prospects, investors can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Lucid Group Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $234.5 million, which exceeded expectations by $34 million. Despite a loss per share of $0.22, this was better than the anticipated loss of $0.25. The company has set a production target of 20,000 vehicles for 2025, doubling its 2024 output. Meanwhile, CFRA adjusted Lucid’s stock rating from Strong Sell to Sell, maintaining a price target of $1.00, citing ongoing financial challenges and a significant gross loss per vehicle.
Stifel analysts revised their price target for Lucid to $3.00 from $3.50, retaining a Hold rating, and emphasized the importance of upcoming product launches, including the Gravity SUV and a mid-size platform. Cantor Fitzgerald maintained a Neutral rating with a $3.00 target, acknowledging Lucid’s technological advancements but expressing concerns over its negative gross margin and need for additional capital. BofA Securities downgraded Lucid’s stock rating to Underperform, reducing the price target to $1.00, due to concerns about potential delays in future projects affecting volume projections. These developments highlight the mixed analyst sentiment and financial performance surrounding Lucid Group Inc.
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