TLDR
- Stifel reduces Lucid price target to $2.10 from $3.00, keeps Hold rating
- LCID stock down 34% year-to-date, additional 9% drop since Q2 earnings
- 1-for-10 reverse stock split starts trading September 2 for Nasdaq compliance
- 2025 production target cut to 18,000-20,000 vehicles from 20,000 units
- Analyst wants clarity on Gravity SUV sales before upgrading rating
Lucid Group stock continues facing headwinds as Stifel analyst Stephen Gengaro slashed his price target while the electric vehicle company prepares for a reverse stock split.
The four-star analyst cut his LCID price target to $2.10 from $3.00 per share. He maintained a Hold rating on the stock. Post-split, this target equals $21.00 per share.
Lucid’s 1-for-10 reverse stock split takes effect in trading September 2. The company announced this move August 21 to maintain Nasdaq minimum bid price requirements.
Earnings Miss Despite Revenue Growth
Lucid’s Q2 results showed mixed performance with revenue beating expectations at $259.43 million. This marked 29.3% year-over-year growth compared to the same quarter last year.
However, the company missed on profitability metrics. Lucid reported a $2.80 per share loss, worse than the $2.20 analyst estimate. Both gross profit and adjusted EBITDA fell short of forecasts.
The company’s negative net margin reached 259.57%. Return on equity came in at negative 79.40%, reflecting ongoing profitability challenges.
Production Cuts Signal Market Pressure
Lucid reduced its 2025 production outlook to 18,000-20,000 vehicles from 20,000 units previously. Gengaro cited market volatility and industry headwinds as key factors behind this adjustment.
LCID stock has dropped 34% year-to-date through September 1. Shares also fell 9% following the August 5 earnings report.
Trading volume hit 20,428,800 shares Thursday, down 82% from the 114,661,500 daily average. The stock traded between $2.03 and closed at $2.06.
Analyst Outlook Remains Cautious
Despite production challenges, Gengaro praised Lucid’s technology capabilities. He called the Air sedan and upcoming Gravity SUV “excellent products.”
The analyst warned Lucid will likely need additional capital for operations and growth over the next few years. He’s waiting for more clarity on Gravity SUV sales and the midsize vehicle launch before turning bullish.
Wall Street maintains a consensus Hold rating on LCID stock. This includes two Buy ratings, eight Hold recommendations, and one Sell rating from the past three months.
The average analyst price target of $3.14 suggests 58.59% upside potential from current levels. Institutional investors own 75.17% of outstanding shares.
Lucid maintains a current ratio of 2.58 and debt-to-equity ratio of 0.92. The company’s market cap stands at $6.08 billion with a beta of 0.79.
