Needham analyst Chris Pierce has reiterated their neutral stance on LCID stock, giving a Hold rating on August 4.
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Chris Pierce has given his Hold rating due to a combination of factors impacting Lucid Group’s current and future performance. While the demand for Lucid’s Gravity model shows promise, and the partnership with Uber and Nuro highlights the potential of its technology platform, there are significant challenges that cannot be overlooked. The company has had to adjust its production targets, and despite the technological advancements, achieving substantial profitability remains a challenge.
Additionally, Lucid Group is facing high cash burn and ongoing margin pressures, which are critical concerns for investors. Although there is continued support from sponsors providing some financial runway, the company needs to make considerable strides in scaling production and enhancing manufacturing efficiency to achieve sustainable earnings. These factors collectively contribute to the Hold rating, reflecting a cautious optimism about the company’s long-term potential while acknowledging the hurdles it faces in the near term.
In another report released on August 4, Cantor Fitzgerald also reiterated a Hold rating on the stock with a $3.00 price target.