Cantor maintains Lucid stock Neutral with $3 target

Published 05/05/2025, 13:24
Cantor maintains Lucid stock Neutral with $3 target

Monday, Cantor Fitzgerald reiterated a Neutral rating on Lucid Group Inc . (NASDAQ:LCID) with a consistent price target of $3.00. According to InvestingPro data, the stock currently trades at $2.53, with analyst targets ranging from $1.00 to $5.00. InvestingPro analysis indicates the stock is currently fairly valued based on its comprehensive Fair Value model. The firm’s analyst highlighted Lucid’s first-quarter performance, noting that the electric vehicle manufacturer delivered 3,109 vehicles, aligning with Cantor Fitzgerald’s and Visible Alpha consensus estimates of 3,060 and 3,010 vehicles, respectively. This delivery count marks an improvement over the 1,967 vehicles delivered in the first quarter of 2024. InvestingPro data shows the company achieved 36% revenue growth over the last twelve months, though it maintains negative gross margins of -114%.

Lucid also announced that over 600 additional vehicles are currently en route to Saudi Arabia for final assembly. Furthermore, Lucid’s vehicle production in the first quarter of 2025 reached 2,212, exceeding the 1,728 vehicles produced in the same period of the previous year. The company has provided revenue guidance for the first quarter of 2025, estimating between $232 million and $236 million, while maintaining its full-year 2025 production guidance at 20,000 vehicles, which is in line with preliminary estimates.

In 2024, Lucid delivered 10,241 vehicles and produced 9,029 vehicles. The upcoming earnings call, scheduled for 5:30 PM ET on May 6, 2025, is anticipated to offer insights into the company’s gross margins, which Lucid is actively working to improve from previous negative figures. Analysts are currently expecting negative gross margins of approximately 95% for the first quarter. InvestingPro subscribers have access to 10 key investment tips for LCID, including detailed analysis of the company’s financial health, which currently rates as "FAIR" with a score of 1.9 out of 5.

During the earnings call, attention will be directed towards the initial sales performance of Lucid’s new Gravity SUV, which launched earlier this year. Updates are also expected on the progress of the high volume midsize SUV, with a targeted start of production in late 2026 and a starting price below $50,000. Additionally, further details are anticipated regarding the recent capital injections and the relationship with the Public Investment Fund (PIF). InvestingPro analysis shows the company maintains a strong current ratio of 4.18, with cash holdings exceeding debt, though it’s currently burning through cash at a significant rate.

In other recent news, Lucid Group Inc. has announced its latest electric vehicle, the 2026 Lucid Gravity SUV, which promises a driving range of up to 450 miles and rapid charging capabilities. The company has also secured $1.1 billion through a convertible senior notes offering, with net proceeds aimed at bolstering growth and general corporate purposes. Benchmark analysts have maintained a Buy rating for Lucid, with a $5.00 price target, following the company’s report of delivering 3,109 vehicles in the first quarter, aligning with market expectations.

Lucid’s first-quarter revenue guidance fell slightly below consensus estimates, yet analysts see potential for the company to capture more market share, especially as recent Tesla (NASDAQ:TSLA) sales dips may benefit Lucid. Cantor Fitzgerald analysts have maintained a Neutral rating on Lucid, highlighting the company’s strong vertical integration and limited tariff exposure due to U.S.-based manufacturing. The company is expanding its production capabilities with a new facility in the Middle East, focusing on regional demand.

Lucid’s shares have shown resilience amid broader market downturns, with its strategic approach to manufacturing being noted as a mitigating factor against operational risks. The upcoming introduction of the Lucid Gravity SUV is viewed as a promising opportunity for market share expansion. Additionally, Lucid’s domestic operations are expected to lessen the impact of new tariffs compared to traditional automakers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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