This Analyst Sees More Than 50% Upside In Lucid After Q4 Deliveries

  • Citi analyst Itay Michaeli resumed coverage of Lucid Group, Inc LCID with a Buy rating and a $12 price target. 
  • Citi's latest model & valuation framework incorporated Lucid's reported Q3 results, Q4 deliveries, Q4 capital raise, recent macro pressures & industry EV price actions, lower peer comps, and an intensifying competitive environment. 
  • Despite recent and ongoing headwinds, Lucid's latest Q4 production update & balance sheet actions encouraged the analyst.
  • Also Read: Tesla Rival Lucid Offers $7,500 Discount On Its Air Sedan: Here's How To Qualify
  • The analyst continues to like the company's technology & product positioning in the EV race. 
  • Citi's key focus areas now include the continued production ramp of the Air, upcoming reservations, demand updates, the company's go-forward pricing strategy, 2023 gross margin outlook, and Gravity launch milestones. 
  • With production execution improving, near-term liquidity addressed, and expectations have come down, the analyst liked the risk and reward here but expected continued near-term volatility amid ongoing macro and competitive developments. 
  • Price Action: LCID shares traded higher by 9.97% at $8.60 on the last check Monday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsPrice TargetInitiationAnalyst RatingsMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!