With Lucid Group (NASDAQ: LCID) stock facing significant challenges this year, including a 30% price drop in 2024 alone and over 60% over the past year, analysts are cautious regarding its performance in the next 12 months, most of them advising that investors refrain from any action at the moment.
As it happens, the electric vehicle (EV) manufacturer has been struggling lately and has announced a restructuring plan, which involves cutting 400 job positions, or 6% of its entire workforce, in an effort to reduce costs, according to an 8-K filing and staff email from CEO Peter Rawlison on May 24.
However, a glimmer of hope has emerged in the form of the launch of Lucid’s first electric SUV, called the Lucid Gravity, set to happen by the end of this year, which Rawlison told his employees would be “the world’s best SUV and dramatically expand our total addressable market.”
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Lucid stock price prediction
In such a context, eight Wall Street experts have shared over the past three months their prognoses for the price of Lucid shares in the next 12-month period, with six of them recommending a ‘hold,’ one voting for a ‘buy,’ and one suggesting a ‘sell,’ as per TipRanks data on May 31.
At the same time, these analysts have offered their LCID price targets for the following year, averaging at $3.16, which would suggest an upside of 10.49% if they are correct, with the lowest LCID price target at $2.9 (+1.4%), and the highest price looking at $4 (+39.86%).
Specifically, one of the experts is RBC Capital analyst Tom Narayan, who, on May 16, projected that Lucid stocks would trade at the price of $3 per share, cutting the LCID price target from the previous $6 but pointing out that:
“Focus is on demand for the Gravity SUV, which management believes has 6x TAM vs its sedans. Further, the company was able to secure $1B in financing from an affiliate of PIF, bringing liquidity to $5B at the end of Q1.”
In early May, Needham analyst Chris Pierce reiterated his ‘hold’ recommendation for his company’s clients without providing a fixed price for the next 12 months but supporting the neutral view by arguing that:
“We continue to be believers in LCID’s best in class technology driving industry leading efficiency (LCID vehicles combine higher mileage ranges with lower kWh battery pack sizes vs OEM peers), but we also continue to see low absolute delivery numbers, limiting fixed cost absorption driving financial statement losses and driving further capital needs.”
Lucid stock price analysis
For now, the price of Lucid shares stands at $2.86, which reflects a negative change of 1.04% in the last day but an increase of 1.97% over the past week, whereas on its monthly chart, it is recording an 8.97% gain, according to the most recent information retrieved on May 31.
All things considered, LCID stock, indeed, seems like a ‘hold’ at the moment, at least until things become clearer in terms of the company’s future plans, as well as the success of its electric SUV, which is why doing one’s own research is critical when investing.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
