Electric vehicle (EV) stocks are in full vogue, riding on the hot initial public offering (IPO) of Rivian (NASDAQ:RIVN). Impressively, RIVN stock closed up 29% on its first day of trading. And another big EV name is riding higher alongside it. Lucid Group’s (NASDAQ:LCID) price target was doubled to $60 by Bank of America on the same day of RIVN stock’s IPO. LCID stock is currently trading at $43, and a $60 price target would imply a 40% upside. Is that realistic? Let’s take a deeper look at Lucid Motors price predictions.
Analyst John Murphy at Bank of America increased his price target for LCID stock after dramatically raising EV/Sales and EV/EBITDA estimates for 2025.
“Our $60 PO for LCID is now based on ~8.5x EV/Sales (prior ~3x) and ~104x EV/EBITDA (prior ~37x) on our 2025 estimates (now using a forward Balance Sheet), implying ~1x EV/Sales and ~6.5x EV/EBITDA on pro-forma capital-induced 2030 estimates.”
It’s worth noting that Lucid has only delivered 520 cars. However, Lucid held a rally last month for its first model, the Lucid Air. The model carries a price tag of $169,000. Prospective customers were drawn in by the promises of 470+ miles per charge and a top speed of 168 mph. Additionally, the company stated that cheaper models are coming in 2022. For now, though, LCID stock is still very much a speculative investment in its early innings.
With that said, LCID stock has skyrocketed 78% over the past three months and 331% year-t0-date, outpacing the S&P 500 in both time frames.
Lucid Motors Price Predictions: Where Will the EV Maker Go Next?
- CFRA Research has a price target of $35. Analyst Garrett Nelson states a healthy balance sheet, a new manufacturing factory and proprietary technology as positive price catalysts.
- Citigroup has a price target of $28. Analyst Italy Michaeli believes Lucid’s technology is superior to other EV competitors and that its brand power is very strong.
- Morgan Stanley has a price target of $12, the lowest on Wall Street. Analyst Adam Jones believes shares of Lucid are massively overvalued. Additionally, he stated the recent price appreciation is “dominated by retail rather than institutional and is more outright share buying skewed rather than option skewed.”
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.