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Lucid Group (NASDAQ:LCID) fell in early trading on Wednesday after the electric vehicle maker said it now expects to produce 8K to 8.5K vehicles in 2023 vs. a prior forecast for more than 10K units.
On Wall Street, Needham reiterated a Buy rating on Lucid Group (LCID) but clipped its price target to $5.00. “We continue to believe in LCID’s industry leading battery and drive train technology, and continue to see legacy OEMs struggle to make affordable EVs, with LCID a willing potential technology partner to drive down costs, particularly on the battery tech side, but we lower our estimates again on lower deliveries, driving lower margins, with potential upside pushed out a year in our model,” updated analyst Chris Pierce. LCID’s Gravity SUV launch is seen by Needham as a potential soft catalyst, as well as ramping units to fulfill a larger number of orders from Saudi Arabia. The updated $5 price target represents 20X the firm’s 2028 adjusted EBITDA estimates discounted back three years at a 15% discount rate.
Cantor Fitzgerald downgraded Lucid Goup (LCID) to a Neutral rating and lowering its price target to $6 from $10. The firm pointed to lower expected revenues, persistent large negative gross margins, revision of the company’s annual production guidance, and industry demand slowdown.
On Seeking Alpha, Value Pendulum also downgraded Lucid Group (LCID) and now rates it a Sell.
Shares of Lucid Group (LCID) fell 5.35% in premarket action on Wednesday.
Image and article originally from seekingalpha.com. Read the original article here.