Lucid Motors (NASDAQ:LCID) stock is in the news Tuesday as investors react to a new price target for the company’s shares.
Morgan Stanley analyst Adam Jonas is behind today’s news with a price target of $5 for the company’s shares. That’s an incredibly bearish price estimate that represents a potential 57% drop from the company’s closing price on Monday.
But that’s not the only thing investors will note about the $5 price target. It also implies that over the next 12 months, LCID stock will hit a new all-time low. The company’s previous low is $6.36, which it hit earlier this month.
Investors will also keep in mind that Jonas has an “underweight” rating for shares of LCID stock. The current analysts’ consensus rating for LCID shares is “hold” based on nine analysts’ opinions.
What’s Behind the Bearish Stance for LCID Stock?
The Morgan Stanley analyst doesn’t have high hopes for the electric vehicle (EV) company based on its recent performance. He claims “the fundamental outlook facing Lucid is more likely deteriorating than improving,” in a letter obtained by CNBC.
As far as today’s stock movement goes, LCID shares are down 2.1% as of Tuesday morning. That comes alongside some 10 million shares changing hands. For the record, the company’s daily average trading volume is about 32 million shares.
Investors seeking out more of the latest stock market news will want to stick around!
InvestorPlace is home to all of the most recent stock news traders need to know about on Tuesday! Among that is what’s moving shares of Expion360 (NASDAQ:XPON), Sidus Space (NASDAQ:SIDU), and ContraFect (NASDAQ:CFRX) stock moving today. You can catch up on all of this news at the links below!
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On the date of publication, William White 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.