Lucid (NASDAQ: LCID) stock’s dramatic price swings within the last month of trading have left analysts divided in their assessments of the electric vehicle (EV) maker, though recent notes show a clear bias toward a bearish outlook.
Specifically, after the July bout of optimism for LCID shares, August brought the more negative view into sharper focus, with no Wall Street rating revision since the month started proving bullish.
In fact, Stephen Gengaro from Stifel Nicolaus proved the biggest optimist among his peers when he, on August 5, issued a ‘Hold’ recommendation for Lucid and a $17 12-month stock price target.
Indeed, the other Wall Street analysts whose assessment of LCID is ‘Neutral’ – Cantor Fitzgerald, Needham, and TD Cowen – all forecasted the EV maker’s equity would stand at either $7 or $8 in the next 52 weeks.
Bank of America’s (NYSE: BAC) Alexander Perry and Morgan Stanley (NYSE: MS) analyst Andrew Percoco came in on the other end of the spectrum and rated Lucid stock as a ‘Sell,’ with the latter also providing the Street low price target of $5.
Analysts predict Lucid stock price target in the next 12 months
Elsewhere, the August recommendations proved in line with the long-running Wall Street view of LCID. Specifically, the EV maker is overall considered a ‘Hold’ by institutional analysts, with five viewing it as such, one giving it a ‘Buy,’ and two a ‘Sell’ recommendation.
Still, Lucid stock is, on average, expected to rise 50.10% from its latest closing price of $6.44 to $9.67 within the next 12 months, per the data Finbold retrieved from TipRanks on August 14.
Why Wall Street remains cautious regarding Lucid stock
Meanwhile, the recent mix of ratings can be explained by LCID shares’ strong upward moves in July, but also by the correction that arrived with the August 4 earnings report.
Most notably, Lucid stock soared 21% on July 28, driven by investor optimism after a large stake held by a member of the Saudi royal family – the billionaire Prince Al Waleed bin Talal Al Saud – became known, as it was viewed as a strong show of confidence by some of the EV maker’s biggest backers.
The car company’s August earnings, however, dampened the enthusiasm as both the firm’s revenue and loss per share came in lower than expected. Specifically, sales in the quarter came in at $405 million while analysts were calling for $416 million, and the loss amounted to $3.30 instead of the forecasted $2.46.
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