Written by Cláudio Afonso | LinkedIn | X
R.F. Lafferty upgraded on Monday Lucid shares from Hold to Buy while setting a price target of $4 following the electric vehicle maker’s third-quarter earnings results reported last week. Based on the latest closing price, the firm sees an 81% upside potential on the California-headquartered manufacturer.
In a new research note, the analyst said the EV maker anticipates a “soft production” phase in the coming weeks, with further details on the timing of customer deliveries to follow, as initially reported by The Fly.
The investment firm also cited Lucid’s “cost improvement, continued volume growth, and balance sheet strength” as reasons for the upgrade, adding that it believes the company’s cost structure is improving while it maintains steady sales growth.
As of the time of writing, the stock of the premium electric vehicle maker is trading nearly 9% higher at $2.40.
Earlier today, Stifel analyst Stephen Gengaro lowered the price target on the stock to $3.50 (from $4.00) while keeping a Hold rating.
“Lucid delivered solid 3Q24 results, with revenue hitting the high-end of management’s recently updated guidance and gross margins outpacing its implied guidance exiting 2Q24,” the analyst noted.
“The company continues to emphasize improving its cost structure and financial position, underpinned by its recent $1.7 billion equity raise,” he added.
In the new note, Gengaro said Gravity’s “early feedback continues to trend positively”. Production is scheduled to start over the next weeks with deliveries starting with the higher-end variant, the Lucid Gravity Grand Touring.
“Additionally, Lucid opened pre-orders for its pivotal Gravity SUV in the United States, and early feedback continues to trend positively. We maintain our Hold rating with a $3.50 target price down from $4.00 previously largely due to dilution from equity raise,” the analyst wrote.
The model lineup begins with the Grand Touring variant, available now for pre-order starting at $94,900. Fully loaded, the Gravity costs about $125,000. This higher-end trim is projected to deliver 828 horsepower and a projected range surpassing 440 miles, according to the EV maker.
Chinese EV brands should not be underestimated despite their lag in powertrain technology and the substantial state support they receive,
Lucid Motors CEO Peter Rawlinson commented on Chinese competitors in a new interview released this weekend where he reiterated that the companies are “certainly heavily subsidized by central governments.”
In the same interview, Lucid’s CEO criticized the quality of electric vehicles available in the U.S., stating that many Americans have found their experiences with EVs underwhelming.
Written by Cláudio Afonso | LinkedIn | X
