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Wednesday, Lucid Group Inc . (NASDAQ:LCID) maintained its Hold rating by Needham following the company’s first-quarter results and subsequent commentary. With revenue growth of 35.7% in the last twelve months, the analyst at Needham highlighted the promising start of Lucid’s Gravity SUV, which is anticipated to be a significant contributor to the company’s unit growth this year. The new model presents an opportunity for Lucid to reintroduce its brand to potential customers as it ramps up vehicle production. InvestingPro analysis shows the company’s stock is currently trading slightly below its Fair Value.
Lucid is seen to benefit from a relatively protected tariff position compared to its legacy original equipment manufacturer (OEM) peers. While the company maintains a strong current ratio of 4.18 and holds more cash than debt, InvestingPro data reveals concerning gross profit margins of -114% and rapid cash burn. The stock’s valuation is currently influenced by uncertainties related to the company’s ability to scale, improve margins, and execute its plans to tap into future total addressable markets (TAM). For deeper insights into Lucid’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Despite these challenges, the analyst chose to reiterate the Hold rating, noting that Lucid’s stock is trading at approximately 12.5 times the firm’s estimated adjusted EBITDA for fiscal year 2029, discounted back to present value. This valuation reflects the market’s cautious stance, with investors looking for more tangible evidence of sustained progress before making further investment decisions.
Lucid’s Gravity SUV is expected to be a key driver of the company’s growth this year, which could potentially attract new customers and help establish Lucid as a serious player in the electric vehicle industry. The company’s strategy and future models are critical to increasing its TAM and achieving long-term profitability. However, until more definitive signs of success are evident, Needham’s position remains unchanged with a Hold rating on Lucid stock.
In other recent news, Lucid Group Inc. reported its financial results for Q1 2025, showing an earnings per share (EPS) of -$0.20, which was better than the expected -$0.23. However, the company’s revenue of $235 million missed the forecast of $246.01 million. The company delivered 3,109 vehicles, representing a 58% year-over-year increase. Lucid ended the quarter with $4.56 billion in cash and investments. Meanwhile, Cantor Fitzgerald maintained a Neutral rating on Lucid with a $3 price target, adjusting its financial projections due to revised delivery estimates. The firm lowered its revenue forecast for fiscal years 2025 and 2026, citing decreased vehicle delivery expectations. BofA Securities reiterated an Underperform rating on Lucid with a $1 price target, noting that while Lucid’s EPS was better than expected, the revenue fell short of projections. The company completed a private offering of convertible senior notes in April, raising $1.1 billion, which it used to repurchase $1 billion of its notes maturing in 2026.
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