In a report released yesterday, John Murphy from Bank of America Securities reiterated a Sell rating on Lucid Group (LCID – Research Report), with a price target of $1.00.
John Murphy’s rating is based on several critical factors impacting Lucid Group’s outlook. The company has been experiencing slower-than-expected growth in its vehicle deliveries, particularly with its Gravity model, leading to a downward revision of future delivery estimates. This underperformance in deliveries has resulted in a more cautious outlook on the company’s ability to achieve its sales targets.
Additionally, the recent departure of Lucid’s CEO has introduced uncertainty regarding the company’s future product development and consumer demand. While the acquisition of Nikola’s facilities offers potential for expansion, the need for additional capital raises before 2026 suggests financial challenges ahead. These factors combined have led to a Sell rating, reflecting concerns over Lucid’s ability to meet its long-term financial and operational goals.
According to TipRanks, Murphy is a 4-star analyst with an average return of 5.6% and a 48.52% success rate. Murphy covers the Consumer Cyclical sector, focusing on stocks such as Aptiv, American Axle, and Group 1 Automotive.