Lucid Group: Hold Rating Amid Promising SUV Launch and Financial Concerns

Needham analyst Chris Pierce has reiterated their neutral stance on LCID stock, giving a Hold rating on May 5.

Chris Pierce has given his Hold rating due to a combination of factors including the promising start of Lucid Group’s Gravity SUV, which offers the brand a renewed opportunity to capture new customers as production scales up. Despite this positive development, there are concerns about the company’s financial health, particularly its liquidity, given the capital-intensive nature of its growth plans and ongoing financial losses.
Furthermore, the valuation of Lucid Group is under pressure due to uncertainties surrounding its ability to scale operations, improve margins, and successfully execute future models aimed at increasing its total addressable market. Investors are looking for more definitive signs of sustained progress before making more optimistic assessments. Consequently, the stock is trading at approximately 12.5 times the forecasted adjusted EBITDA for fiscal year 2029, discounted back to present value.

In another report released on May 5, Cantor Fitzgerald also reiterated a Hold rating on the stock with a $3.00 price target.