Stifel Just Slashed Its Price Target on Lucid Motors (LCID) Stock


  • Another Wall Street analyst has reduced his price target on Lucid Motors (LCID).
  • An expert from Stifel Nicolaus believes it will fall to $4 per share.
  • Even in the face of this bearish take, LCID stock has managed to rise over 4% today.
LCID stock - Stifel Just Slashed Its Price Target on Lucid Motors (LCID) Stock

Source: Tada Images / Shutterstock

Lucid Motors (NASDAQ:LCID) stock is rising today by over 4%, even in the face of a Wall Street downgrade. Analyst Stephen Gengaro of Stifel Nicolaus has issued a bearish take on LCID stock, lowering his price target from $5 to $4 and reiterating a “hold” rating.

While the electric vehicle (EV) producer has spent the past six months bleeding out almost 50% of its value, it has picked up some slight momentum over the past week. Today’s performance suggests that the scrappy startup isn’t done fighting, even as Wall Street grows increasingly bearish on the once-promising company. It’s been easy to write off LCID stock as shares have trended downward, but these negative predictions may be premature.

Does this mean that Lucid can mount a comeback? Doing so would mean defying predictions set by many experts. However, that doesn’t mean it can’t be done. Let’s take a look at the former EV winner and assess what investors should be expecting in 2024.

The Road Ahead for LCID Stock

These days, it’s hard to find a positive take on LCID stock. Six Wall Street analysts maintain hold ratings, while three rate it as a sell. No analyst currently maintains a buy rating.

Even after announcing a partnership with iconic department store Saks Fifth Avenue, the company has struggled to garner enough momentum to stay in the green for long. Concerns about the EV market and Lucid’s questionable sales figures have compelled experts such as InvestorPlace’s Louis Navellier to issue stark warnings against buying more LCID shares.

Despite these rising concerns, there’s a case to be made for Lucid sparking a comeback in the coming year. InvestorPlace contributor Faisal Humayun recently flagged it as a likely short-squeeze stock. He speculated that it could see some quick momentum, examining the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA). In his words:

“While EBITDA losses have sustained, Lucid Group reported a liquidity buffer of $4.78 billion. It remains to be seen if cost cutting translates into narrowing of EBITDA level losses in the current year. It’s also worth noting that Lucid Gravity production is likely towards the end of 2024. If production growth guidance looks better for the next year, there is a case for a sustained rally.”

Overall, it’s hard to be too optimistic about a stock that Wall Street is highly bearish on. That said, Lucid has managed comebacks before. If the EV market continues to turn around, it’s not unreasonable to think that LCID stock could slowly start making up the ground it lost in 2023. Slow, steady progress is what investors should want to see, exactly what we’ve seen from LCID stock today.

On the date of publication, Samuel O’Brient 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 Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC