Cantor Fitzgerald Issues Pessimistic Forecast for Lucid Group (NASDAQ:LCID) Stock Price

Key Points

• Cantor Fitzgerald cut its Lucid price target to $6 from $8 but kept a neutral rating; the new target implies 66.7% upside from the stock’s then-current price. Analysts’ average rating was “Reduce,” with an average price target of $7.67.
• Lucid’s quarterly results were mixed: reported EPS and revenue missed consensus, although revenue rose 4.1% year over year. Production fell 24% sequentially to 2,954 vehicles, and deliveries missed expectations.
• Lucid secured $1.75 billion in additional financing from Saudi Arabia’s Public Investment Fund and said quarterly cash consumption declined 30% sequentially, supporting liquidity as it pursues its turnaround.

Lucid Group (NASDAQ:LCID - Get Free Report) had its price target dropped by equities researchers at Cantor Fitzgerald from $8.00 to $6.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Cantor Fitzgerald's price target suggests a potential upside of 66.67% from the stock's current price.

LCID has been the subject of a number of other reports. Morgan Stanley cut their target price on Lucid Group from $5.00 to $3.00 and set an "underweight" rating for the company in a research report on Thursday, October 15th. William Blair cut Lucid Group to a "market perform" rating in a research report on Monday, August 3rd. Citigroup dropped their price target on Lucid Group from $14.00 to $11.00 and set a "buy" rating for the company in a research note on Wednesday, August 19th. UBS Group reaffirmed a "hold" rating on shares of Lucid Group in a research report on Tuesday, October 6th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Lucid Group in a report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Lucid Group presently has an average rating of "Reduce" and an average price target of $7.67.

Lucid Group Trading Up 9.4%

Shares of LCID opened at $3.60 on Tuesday. Lucid Group has a 12 month low of $2.37 and a 12 month high of $17.80. The firm's 50 day moving average is $3.83 and its 200-day moving average is $6.69. The stock has a market capitalization of $1.42 billion, a PE ratio of -0.26 and a beta of 0.80.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its quarterly earnings results on Monday, November 9th. The company reported ($2.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.27) by ($0.03). The company had revenue of $350.32 million during the quarter, compared to the consensus estimate of $395.67 million. Lucid Group had a negative net margin of 249.21% and a negative return on equity of 1,391.51%. The company's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter last year, the firm posted ($2.65) earnings per share. Equities research analysts predict that Lucid Group will post -12.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lucid Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its stake in Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock valued at $28,000 after buying an additional 2,740 shares in the last quarter. IFP Advisors Inc lifted its holdings in shares of Lucid Group by 1,231.3% in the second quarter. IFP Advisors Inc now owns 3,781 shares of the company's stock worth $25,000 after acquiring an additional 3,497 shares during the last quarter. Allworth Financial LP lifted its holdings in shares of Lucid Group by 249.9% in the second quarter. Allworth Financial LP now owns 4,010 shares of the company's stock worth $27,000 after acquiring an additional 2,864 shares during the last quarter. Nykredit A S bought a new position in shares of Lucid Group in the second quarter worth about $47,000. Finally, Meeder Advisory Services Inc. acquired a new stake in shares of Lucid Group in the 1st quarter valued at approximately $98,000. Institutional investors own 75.17% of the company's stock.

Trending Headlines about Lucid Group

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: Lucid secured an additional $1.75 billion in delayed-draw financing from Saudi Arabia’s Public Investment Fund, its largest shareholder. The added funding boosts liquidity as the company works through its turnaround. Reuters article
• Positive Sentiment: The company said quarterly cash consumption fell 30% sequentially, a sign of progress on cost and cash-flow initiatives. Lucid third-quarter results
• Neutral Sentiment: Lucid’s Q3 results were mixed across earnings measures: one estimate showed a narrower adjusted loss than expected, but reported EPS missed consensus and revenue of about $350 million was below analyst forecasts, despite growing year over year. Zacks earnings article
• Negative Sentiment: Production was cut to 2,954 vehicles, down 24% from the prior quarter, while deliveries of 3,806 missed expectations. Lower output reflects efforts to align production with demand, but also highlights execution and sales challenges. Production and demand article

About Lucid Group

Lucid Group, Inc designs, engineers and manufactures electric vehicles and related technologies. Its lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity luxury SUV, which combine electric powertrains with software and battery systems developed by the company.

The company was founded in 2007 as Atieva, initially focusing on electric-vehicle battery technology, and adopted the Lucid Motors name in 2016 as it expanded into vehicle development. Lucid is headquartered in Newark, California, and manufactures vehicles in Arizona, with additional production and assembly operations in Saudi Arabia.

Lucid sells its vehicles in markets including North America, Europe and the Middle East.

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