Cantor Fitzgerald raises Lucid stock price target to $20 after reverse split

Published 05/09/2025, 19:26
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Investing.com - Cantor Fitzgerald has raised its price target on Lucid Group Inc. (NASDAQ:LCID) to $20.00 from $3.00 while maintaining a Neutral rating following the company’s 1-for-10 reverse stock split. According to InvestingPro data, analyst targets for LCID currently range from $10 to $70, while the company maintains a strong liquidity position with more cash than debt on its balance sheet.

The reverse stock split, completed on September 2, consolidated approximately 3.07 billion outstanding shares into roughly 307.3 million shares, while reducing authorized common shares from 15 billion to 1.5 billion. The move increased Lucid’s per-share price from approximately $1.98 at market close on August 29 to $18.90 at market open on September 2. InvestingPro analysis reveals the stock has experienced significant volatility, with a -55.48% return over the past year, though its current price suggests potential undervaluation based on Fair Value metrics.

According to Cantor Fitzgerald, Lucid’s management implemented the reverse split with the goal of making the company’s equity shares accessible to a "broader universe of long-only institutional investors."

Lucid reported a second-quarter 2025 net loss of $(739.3M), compared to analyst estimates of $(768.3M) and consensus of $(743.4M), and versus $(643.4M) in the second quarter of 2024. The company’s non-GAAP diluted net loss per share was $(0.24), in line with estimates.

The electric vehicle manufacturer currently operates 58 studios and service centers globally, with 43 locations in North America, 11 in Europe, and 4 in the Middle East.

In other recent news, Lucid Group, Inc. completed a $300 million investment from Uber Technologies, Inc. to advance their joint robotaxi development program. This collaboration aims to produce autonomous vehicles using Lucid’s electric vehicle technology, with manufacturing set to occur at Lucid’s Arizona facility. Additionally, Lucid Group enacted a one-for-ten reverse stock split, reducing its authorized shares from 15 billion to 1.5 billion. This decision, approved by stockholders and the board, decreased the number of outstanding shares significantly.

In another development, Stifel adjusted its price target for Lucid Group to $2.10 from $3.00, maintaining a Hold rating. This change followed Lucid’s second-quarter results, where revenue slightly exceeded Stifel’s forecast, but gross profit and adjusted EBITDA did not meet expectations. Meanwhile, Canaccord Genuity reiterated its Buy rating for Lucid Diagnostics, maintaining a $3.00 price target after a meeting regarding the usage of Lucid’s EsoGuard test. These developments highlight Lucid’s ongoing strategic and financial activities.

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