Lucid Motors (NASDAQ:LCID) stock is sliding lower on Wednesday following updated coverage from Cantor Fitzgerald analysts.
Analysts at the firm dropped shares of LCID stock from a “buy” rating to a “neutral” rating. For the record, the analyst consensus rating for shares is a reduce rating based on 10 opinions.
To go along with that downgrade, the Cantor Fitzgerald analysts also dropped their price target for LCID stock from $10 to $6 per share. That’s still a potential upside of 39.5% over yesterday’s closing price. However, it’s below the analyst consensus price prediction of $6.65 per share for the stock.
Why the Downgrade for LCID Stock?
Here’s what the Cantor Fitzgerald analysts said about the company in a note to clients obtained by CNBC:
“We are downgrading Lucid (LCID) to Neutral and lowering our PT to $6 (from $10) amidst lower expected revenues, persistent large negative gross margins, revision of the company’s annual production guidance, and industry demand slowdown.”
Investors will note that all of this comes after a mixed earnings report for Q3. Lucid posted EPS of -28 cents alongside revenue of $138 million. Meanwhile, Wall Street’s estimates were for -40 cents per share and revenue of $178 million.
LCID stock is down 5.6% as of Wednesday morning.
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On the date of publication, William White did not hold (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.
