Analysts’ ratings aren’t everything, but they’re something, and Lucid Group’s (NASDAQ:LCID) investors could definitely use a boost in 2022. They just got one, though, as an analyst with Cantor Fitzgerald gave Lucid a positive rating and price target. Moreover, the analyst envisions Lucid expanding its global electric vehicle (EV) market share. In response, LCID stock traders are pushing the shares higher today.
As you may recall, Lucid Group revised its full-year 2022 vehicle production volume outlook in August, to a range of 6,000 to 7,000 vehicles. The automaker had previously guided for around 13,000 vehicles. So, obviously this was disappointing to Lucid’s shareholders.
A new bullish forecast on Wall Street could lift the investors’ spirits, however. Specifically, Cantor Fitzgerald Analyst Andres Sheppard initiated coverage of LCID stock with a “buy” rating. Along with that, Sheppard assigned the shares a price target of $23, indicating upside of 60% from Monday’s close.
What’s Happening With LCID Stock?
Lucid’s loyal investors haven’t had much luck this year so far. The shares topped out near $45 in January, only to slide to around $14 yesterday.
Today could be the start of a turnaround, though, as LCID stock jumped 4% to 5% early in the trading session. The market was generally in a good mood this morning, but clearly Lucid’s shareholders are pleased with the Cantor call.
What’s the analyst thinking now? Reportedly, Sheppard sees Lucid Group capturing 2% of the global EV market share by the year 2026. That might not sound like much, but consider the vast size of that market, and the fierce competition within that market.
If Sheppard’s projection turns out to be correct, Lucid could actually deliver over 500,000 EVs. That’s not too shabby for a startup that the market seemingly hated during 2022’s first half.
Hence, LCID stockholders will need to be patient as Lucid’s best days may be several years ahead. Today, however, they can appreciate Sheppard’s optimism, and hope that his predictions become a reality.
On the date of publication, David Moadel 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.