Written by Cláudio Afonso | LinkedIn | X
Cantor analyst Andres Sheppard sent out a new note on Wednesday reaffirming the 12-month $4 price target on the electric vehicle maker Lucid Motors.
Following the 12.75 per cent surge on Wednesday, Lucid shares closed at $3.98 — just under the price target from the financial firm.
Lucid held on Tuesday its Tech and Manufacturing Day at the Arizona plant where the CEO Peter Rawlinson revealed more details on the upcoming Gravity SUV and also on the in-house developed tech.
“We continue to believe that Lucid’s vehicles are able to provide greater battery efficiency, longer battery range, better performance, more interior space, and faster charging relative to other passenger EVs,” Sheppard wrote.
Earlier this week, on September 10, Lucid said The Lucid Gravity is scheduled for start of production later this year.
“Lucid is targeting start of production of its Air Gravity (SUV) in 4Q24 (we expect initial deliveries in 2025), and we believe this will help boost customer demand and improve margins,” Cantor analyst added.
Sheppard expects Gravity to be “well-received by customers” given its performance, battery efficiency and “superior range”.
“With the Gravity, Lucid will be entering the SUV customer segment at a starting price of <$80,000, which is expected to have 6x the TAM of its Sedan. Given the vehicle performance, battery efficiency, and superior range, we expect the Gravity will be well-received by customers once deliveries begin,” he wrote.
Sheppard reaffirmed the Neutral rating on the stock and a $4 price target.
“Our Neutral rating and our 12-Month $4 PT are Unchanged. We arrive at our $4 PT via a bottom-up 10-year DCF. We assume an 11 per cent WACC and a terminal value with a 2 per cent long-term growth rate. Key risks include: Slowdown in EV demand, manufacturing challenges, and high competition,” the analyst added.
Written by Cláudio Afonso | LinkedIn | X
