Cantor Fitzgerald maintains Neutral rating on Lucid stock amid mixed outlook

Published 06/08/2025, 15:06
Cantor Fitzgerald maintains Neutral rating on Lucid stock amid mixed outlook

Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $3.00 price target on Lucid Group Inc . (NASDAQ:LCID), citing both strengths and challenges facing the electric vehicle manufacturer. The company, currently valued at $6.85 billion, has seen its stock decline about 20% year-to-date, though InvestingPro analysis suggests the stock is trading near its Fair Value.

The research firm acknowledged Lucid’s technical advantages, noting its vehicles offer higher battery efficiency, longer range, better performance, more space, and faster charging compared to competitors. Cantor Fitzgerald also highlighted that Gravity daily orders have "nearly doubled" since the vehicle’s display.

The firm projects 6,064 Lucid Gravity deliveries in fiscal year 2025 and 10,248 in fiscal year 2026, estimating the Gravity will target a market approximately six times larger than the Lucid Air Sedan. Analysts also view the planned midsize platform launch in the second half of 2026 as a potential catalyst for scaling and margin improvement.

Cantor Fitzgerald expressed optimism about Lucid’s plans to enter the robotaxi market in late 2026 through a partnership with Uber (NYSE:UBER), considering this a material catalyst for the company’s growth.

Despite these positive factors, the firm remains neutral due to several concerns, including persistent high negative gross margins, additional capital requirements, supply constraints, a deteriorating macroeconomic environment, and tariff uncertainties.

In other recent news, Lucid Group reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of -0.24, which was below the forecasted -0.22. The company’s revenue reached $259.4 million, missing expectations of $283.19 million by 8.4%. Despite these shortfalls, analysts at Baird have adjusted their price target for Lucid Group from $3.00 to $2.00, while maintaining a Neutral rating. Additionally, Needham reiterated its Hold rating on Lucid Group, citing near-term execution challenges that could hinder immediate growth. However, Needham noted positive demand trends for Lucid’s Gravity model and highlighted the company’s partnership with Uber and Nuro as a testament to the strength of its technology platform. These developments reflect the mixed reactions from analysts and the market regarding Lucid Group’s recent performance and future potential.

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