Stifel lowers Lucid Group stock price target to $2.10 on production cut

Investing.com - Stifel has reduced its price target on Lucid Group Inc. (NASDAQ:LCID) to $2.10 from $3.00 while maintaining a Hold rating on the electric vehicle manufacturer’s stock. The company’s stock, currently trading near its 52-week low of $1.93, has seen a -47.73% return over the past year according to InvestingPro data.

The price target adjustment follows Lucid’s second-quarter results, which showed revenue slightly exceeding Stifel’s forecast, while gross profit and adjusted EBITDA fell below projections. InvestingPro data reveals concerning metrics, with gross profit margins at -99.26% and three analysts recently revising earnings estimates downward.

Lucid has revised its 2025 production guidance downward to 18,000-20,000 vehicles from its previous target of 20,000 units, citing market volatility and industry headwinds as factors behind the reduction.

Stifel noted that while it remains confident in Lucid’s technology and views both the Air sedan and upcoming Gravity SUV as "excellent products," the firm expects Lucid will require additional capital over the next few years.

The new $2.10 price target will translate to $21.00 after Lucid completes its planned 1-for-10 stock split, according to Stifel’s research note.

In other recent news, Lucid Group announced its second-quarter 2025 financial results, revealing adjusted earnings per share of ($0.28), which missed both BofA Securities’ estimate of ($0.18) and Bloomberg’s consensus of ($0.22). The company reported revenue of $259 million, falling short of BofA’s projection of $267 million and consensus expectations of $262 million. Despite the revenue miss, Benchmark maintained a Buy rating on Lucid stock, while Stifel reiterated its Hold rating with a $3.00 price target, noting that Lucid’s revenue exceeded their estimate of $254.0 million due to higher average selling prices.

In other developments, Lucid Group announced a 1-for-10 reverse stock split, effective August 29, 2025, following approval from its Board of Directors and stockholders. This move will see the company’s common stock begin trading on a split-adjusted basis in early September. Additionally, Lucid plans to unveil a new concept vehicle based on its Gravity SUV during Monterey Car Week 2025. The company will also offer public demonstration drives of its Air sedan and Gravity SUV models for the first time at this prestigious automotive event.

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