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Lucid stock outlook for 2022; Analysts are split on LCID

Lucid stock outlook for 2022; Analysts are split on LCID
Jordan
Major
5 months ago
4 mins read

Lucid Motors (NASDAQ: LCID) finished at $40.93 in the most recent trading session on Monday, January 3, representing a 7.57%% increase on the day and a +$3.19 (8.45%) increase over the past five days.

Despite the recent move to the upside and coming off the back of a debut year in which the stock gained more than 260%, analysts are divided on their outlook for the path Lucid will go in 2022 as they provide their predictions as the new year gets underway.

LCID is now trading in the center of its 52-week range; the short-term trend is neutral, although the long-term trend is positive. In the last month, LCID has been trading in the region of $35.53 to $47.25, a rather broad range; it is now trading in the center of this range, which suggests that traders may find some resistance above the current price.

LCID 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.


Significantly reduced volumes have been noted in the previous couple of days, and with prices stabilizing recently, Lucid has shown a good setup pattern in recent weeks. At $38.27, there is a support zone below the current price of $40.93, and traders might put a Stop Loss order below this area. 

In addition, we have seen that significant players have shown an interest in LCID in the last few days, which is a positive indicator. The Effective Volume indicator monitors the behavior of significant players, which examines the 1 minute period in search of transactions with a high volume.

Wall Street analysts project 4% upside in 2022

On the other hand, the S&P 500 Index is now trading around fresh highs, indicating that LCID is behind the market. 

Despite Lucid trailing the market, four Wall Street analysts have set a high price objective of $60 for Lucid’s stock for the next 12 months and a low price goal of $16 for the firm in the same period. On average, analysts estimate LCID to trade at $42.75, representing a 4.45% increase in value over the stock’s current trading price of $40.93.

LCID analysts’’ price target. Source: TipRanks.com

There is mixed sentiment about the stock’s future prospects, with one TipRank expert advising to ‘Sell.’ At the same time, another urges to ‘Hold.’ Notably, two of the four analysts advocate to ‘Buy‘ the stock although its consensus rating remains hold.

Analyts eye Q1 earnings release date

Recently, we reported that LCID closed its debut year with over 260% gains despite turbulent markets. Now, in 2022, Wall Street will be on the lookout for indications of further improvement in the highly competitive EV sector as Lucid approaches its next earnings release date.

Analysts will first look to see If there have been any recent changes to analyst expectations for Lucid. Typically, these alterations reflect the most recent short-term business developments, which may change quickly. If the company is confident in its business prospects, then upward estimate revisions signify that confidence.

Citi bullish on Lucid

Citi restarted coverage of the electric car firm on Monday afternoon trading, giving it a “Buy/High Risk” rating with Analyst Itay Michaeli, giving the stock a Buy rating and a price target of $57.

The firm said that it is upgrading its model to incorporate a recent capital raising but that it has made no modifications to its original premise. 

Notably, back in September, when Lucid was trading around $20, Michaeli was bullish, giving LCID a Buy rating of $28. The analyst’s latest $57 price objective places Lucid at about $100 billion market capitalization. In such a case, it would become one of the most valuable automotive firms in the world.

The analyst wrote in a report released Monday: 

“We are constructive on the Lucid story and its position in the EV/Car of the Future theme.”

In his opinion, Lucid boasts industry-leading range and charging capabilities, in addition to robust, internally designed self-driving technologies, among other things. 

The company highlighted its EV technology credentials, advantages in terms of speed-to-market with Lucid’s first car, the Air, and an innovative and complete sensor suite as reasons for its decision. Nevertheless, Citi said that Lucid must effectively handle manufacturing ramp-ups in order to remain profitable.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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