Anticipated Lucid Motors' Share Value Over Coming Year, as Per Wall Street Estimations
Wall Street Remains Cautious Over Lucid Group's Stock Outlook
Wall Street analysts exhibit a slightly bearish stance towards Lucid Group's (LCID) stock, with a forecast of increased volatility for the equity over the next year. As of now, LCID remains below the critical resistance level of $3, struggling to reclaim its highest yearly mark of $3.48. Currently, LCID shares are trading at $2.56, marking a 3.7% decrease from the last market close, with a year-to-date decline of 15%.
The California-based electric vehicle manufacturer, while facing stiff competition from industry titans such as Tesla (TSLA), shows promise for future growth potential through its ongoing initiatives. Notably, the release of its Gravity SUV, expected to significantly boost sales, has garnered attention from analysts. Projections suggest a 73% increase in 2025, followed by a further 96% jump in 2026.
Future mass-market vehicle launches by Lucid could help the company capture a larger share of the electric vehicle market, potentially encroaching on Tesla's dominance.
Analysts' Predictions for LCID Stock Price
According to a survey of 10 analysts by TipRanks, there is a mixed outlook for LCID's stock. The average price target sits at $2.54, representing a minor 0.78% decrease from its current level. The price targets vary significantly, ranging from a low of $1 to a high of $5. Despite the moderate average forecast, sentiment overall leans towards a 'Hold' rating. Seven analysts recommend holding LCID stock, while two advise selling, and just one suggests buying.
Analysts' Perspectives on Lucid's Share Price
Chris Pierce from Needham maintained a 'Hold' rating following Lucid's Q1 earnings report on May 7. While he praised the 35.7% year-over-year revenue growth and the forthcoming Gravity SUV rollout, Pierce expresses caution due to Lucid's valuation, trading at approximately 12.5 times the projected 2029 EBITDA adjusted for present value.
Similarly, Stifel's Stephen Gengaro reiterated a 'Hold' rating on May 12, setting a $3 price target. He commended Lucid's strong Q1 2025 performance, effective cost management, and progress towards production targets, while highlighting high cash burn and potential capital requirements as significant concerns.
TD Cowen's Itay Michaeli initiated coverage on May 8 with a 'Hold' rating and a $2.30 target. He views the Gravity launch as a potential turning point but expresses worries about its starting price of nearly $95,000. Michaeli warns that the stock may struggle to gain momentum without strong early sales.
In Summary:
Wall Street analysts stand by a cautious Hold consensus on LCID stock, with an average price target ranging between $2.50 and $5.20, reflecting both substantial risks arising from financial underperformance and inventory issues, as well as opportunities from new product launches and strategic expansions. Investors are encouraged to carefully weigh these factors when considering Lucid's future growth prospects.
Analysts, such as Chris Pierce from Needham, advocate a Hold rating for Lucid Group's (LCID) stock due to concerns about its valuation and potential challenges with the high starting price of its new Gravity SUV. Meanwhile, investments in technology and new product launches, like the Gravity SUV, are seen as promising growth opportunities for the electric vehicle manufacturer, according to analysts like Stephen Gengaro from Stifel and Itay Michaeli from TD Cowen.
