How are energy investors positioned?
On Monday, Cantor Fitzgerald’s analyst reaffirmed a Neutral stance on Lucid Group Inc. (NASDAQ: NASDAQ:LCID), holding steady with a $3.00 price target. The firm’s analyst highlighted Lucid’s recent forecast for fiscal year 2025, which sets the vehicle production goal at 20,000 units. This projection aligns with Cantor Fitzgerald’s initial estimates and surpasses the consensus. Currently trading at $2.42, InvestingPro analysis suggests the stock is slightly undervalued, with analysts’ targets ranging from $1 to $5.
Lucid Group, known for its electric vehicles, achieved production of 9,029 vehicles and delivered 10,241 in fiscal year 2024, contributing to a 35.7% revenue growth in the last twelve months. The company’s leadership changes were also noted, with the announcement on February 25 that Peter Rawlinson would step down as CEO and CTO. Rawlinson, who had been CEO for 12 years, is transitioning to a role as Strategic Technical Advisor and will become the Chairman. His absence from the earnings call was deemed unusual by the analyst.
Despite Lucid’s strengths in producing electric vehicles with superior battery efficiency, longer ranges, better performance, and faster charging capabilities compared to competitors, Cantor Fitzgerald’s neutral rating persists. The firm cites concerns including Lucid’s continued high negative gross margin of -114.27%, the need for additional capital, the transition to a new management team, and deteriorating macroeconomic conditions as reasons for the maintained rating. InvestingPro data reveals the company maintains a strong current ratio of 4.18, though it’s quickly burning through cash. Get access to 12+ additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In other recent news, Lucid Group Inc. has been the focus of multiple analyst assessments following its recent earnings report. Benchmark analysts have maintained a Buy rating with a $5.00 price target, emphasizing confidence in Lucid’s growth potential under new leadership. Conversely, CFRA has adjusted its rating from Strong Sell to Sell, maintaining a $1.00 target, citing financial challenges and a significant gross loss per vehicle. Stifel reduced its price target for Lucid to $3.00 from $3.50, while maintaining a Hold rating, highlighting the importance of upcoming product launches like the Gravity SUV and a mid-size platform for long-term success.
Cantor Fitzgerald has kept a Neutral rating with a $3.00 target, acknowledging Lucid’s achievements in EV technology but expressing caution due to ongoing financial concerns. BofA Securities downgraded Lucid from Neutral to Underperform, slashing the price target to $1.00, amid worries about potential delays in future projects such as the mid-size platform known as the Space. Lucid’s production guidance for 2025 suggests an increase to 20,000 vehicles, aligning with some analyst expectations, but challenges remain regarding profitability and cash flow.
These developments come amidst Lucid’s strategic transition aimed at enhancing sales and manufacturing capabilities. The introduction of new models and technology licensing agreements are seen as potential avenues for revenue growth, though analysts remain divided on the company’s financial outlook. As Lucid navigates leadership changes and market dynamics, investor attention is focused on its ability to achieve projected production and sales targets.
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