Skip to content

Wall Street sets Lucid stock price for the next 12 months

Wall Street sets Lucid stock price for the next 12 months
Ivan Zhelev

Lucid Motors (NASDAQ: LCID) began the year with a stock price of $7, and it has experienced an almost 32% decline in the time of reporting.

The electric vehicle (EV) producer reported disappointing Q3 2023 financial results on November 7, which didn’t meet Wall Street expectations. The announcement led to a sharp drop in the stock value, primarily attributed to a loss of $630.9 million in Q3.

Following this announcement, LCID’s stock dropped to $3.76 per share, marking an almost 20% decline. But it’s slightly recovered and is currently trading at $4.20, just below the trendline price resistance of $4.29. 

LCID year-to-date price performance. Source: Finbold

However, despite the challenges, some analysts are maintaining a ‘Hold’ rating for the stock.

LCID is not out of the woods yet

The company’s challenge has been compounded by negative press coverage, including a report in The Wall Street Journal that Lucid loses $227,000 on each car it sells.

Despite the difficulties, Lucid has been hoping that its new electric SUV Gravity and a strong balance sheet will turn things around. Gravity is expected to be a direct competitor to Tesla’s (NASDAQ: TSLA) Model X, and to have a range of over 400 miles as well as a 0-60 mph time of under 2 seconds.

Image from Deposit Photos / Nasdaq Times Square

Lucid’s balance sheet is relatively strong, with a debt-to-equity ratio of 0.22, indicating that the company has more equity than debt. This is a crucial indicator of the company’s financial stability.

It also has a current ratio of 1.46 and a quick ratio of 0.93, both of which are well above the industry benchmarks of 1.0 and 0.5, respectively.

These ratios indicate that Lucid has sufficient liquidity to meet its short-term obligations. However, Lucid will need to reduce the production cost of its vehicles, which should potentially lead to profitability. 

What do the experts think? 

A synthesis of projections from 8 analysts on TipRanks over the previous quarter indicates a 12-month average price target of $5.21 for Lucid. 

This suggests a potential upside of 24.05% from its current price, leading to an overarching ‘Hold’ recommendation. Based on the last three months’ rating, LCID has received 1 ‘Buy’ rating, 6 ‘Hold’ ratings, and 1 ‘Sell’ rating.

LCID Wall Street analyst 12-month prediction. Source: TipRanks

The highest price target for the stock is $7, meanwhile the lowest price target is $2, below the current price of $4.26. 

While Lucid faces challenges, the potential for recovery and growth remains a point of interest for investors.

Buy stocks now with Interactive Brokers – the most advanced investment platform

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

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts