Summary:
⚈ Cantor Fitzgerald maintains a neutral stance despite recent share decline
⚈ Weak Gravity SUV sales signal deeper downturn could be ahead
Ahead of its upcoming May 6 earnings report, and amidst Lucid (NASDAQ: LCID) stock’s May 5 6.52% early session plunge to $2.38, Cantor Fitzgerald’s Andres Sheppard elected to revise their price target for the beleaguered electric vehicle (EV) maker.
According to the revised estimates, LCID shares are set to rally 26.05% from their press time price and hit $3 within the next 12 months.
Interestingly, despite the weak performance, Cantor Fitzgerald reiterated its ‘neutral’ rating for Lucid stock, signaling confidence that the EV maker is valued fairly and can recover from the latest downturn.
Wall Street remains ‘neutral’ on Lucid stock
The latest price target, as represented on the stock analysis platform TradingView on May 5, is 3.81% above the consensus forecast of $2.89, but is in line with the overall ‘neutral’ rating.
At press time, Lucid stock boasts a relatively balanced spread between ‘buy’ and ‘sell’ ratings, with 3 of the former and 4 of the latter. ‘Neutral’ analysts are, however, in the majority, as there are 11 such ratings.
Could faltering Gravity sales break Lucid’s strong EPS streak?
Cantor Fitzgerald’s latest revision falls in line with Lucid’s somewhat positive streak in terms of quarterly results, as the two most recent filings showed a beat in earnings per share (EPS).
It is also arguably reflective of the EV maker’s recent production woes. The Gravity SUV has been an important driver of bullishness for months, with many 2024 analyses citing high hopes for the model as backing for their optimistic forecasts.
April figures show that the bullishness might have been misplaced. There were reportedly only 5 Gravity registrations in the U.S. in April—83.33% fewer than in March.
Featured image via Shutterstock
