Since several research companies have lowered their price goals and earnings projections, analysts and investors are paying closer attention to Lucid Group, Inc. The premium EV manufacturer faces several difficulties, including fluctuating investor attitudes, changing market conditions, and financial challenges.
Sheppard, an analyst at Cantor Fitzgerald, lowered Lucid Group’s full-year 2025 earnings per share (EPS) projection from $0.94 to $1.03 in a February 26, 2025 report. Growing worries about the company’s financial performance and potential profitability are reflected in this downward adjustment. Despite this change, Cantor Fitzgerald kept its “Neutral” rating on LCID shares, with a price target of $3.00.
Several Revisions by Analysts Increase the Pressure:
Not just Cantor Fitzgerald is changing its perspective on Lucid. Recently, Stifel Nicolaus reiterated its “Hold” rating and lowered its price objective from $3.50 to $3.00. Additionally, Needham & Company LLC kept its “Hold” recommendation, indicating that analysts were cautious.
Meanwhile, earlier in February, Benchmark began covering Lucid Group with a $5.00 price target and a more bullish “provide” recommendation. On the other hand, Royal Bank of Canada (RBC) lowered its price objective from $3.00 to $2.00, escalating worries about the company’s capacity to hold onto its market share.
Remarkably, despite recent financial difficulties, R.F. Lafferty offered a bullish view by promoting Lucid from “Hold” to “Provide” with a $4.00 price objective, indicating possible growth chances.
Shares of Lucid Group were down 0.4% as of Friday, trading at $2.22. The volatility of the stock is shown by its 52-week range, which has seen lows of $1.93 and highs of $4.43. The business has a market valuation of $6.69 billion, a beta of 0.93, and a P/E ratio -1.66.
With a debt-to-equity ratio of 0.77, a quick ratio of 3.26, and a current ratio of 3.71, Lucid’s balance sheet is still comparatively sound. However, Investors are concerned about the company’s high burn rate and financial losses.
Institutional Investors Make Holding Adjustments:
With conflicting indications on their level of trust in Lucid Group’s future, institutional investors have been carefully managing their holdings in the firm.
- In Q4 2024, the Public Employees Retirement System of Ohio’s holdings grew by 5.3%, reaching 339,579 shares worth $1.03 million.
- Additionally, Alpine Global Management LLC increased its stake by 7.4% by acquiring 4,653 shares, bringing its total number to 67,153, valued at $203,000.
- By acquiring 504,171 more shares, UBS Asset Management Americas LLC considerably expanded its ownership by 23.9%, increasing its total to 2.61 million shares valued at $7.89 million. Waverly Advisors LLC and Worldquant Millennium Advisors LLC’s entry into fresh holding showed hedge funds’ selective interests.
Lucid Group is still a company to watch in the EV market despite analyst downgrades, price target decreases, and changing institutional investments. The company’s future course will depend on its capacity to increase market presence, boost financial performance, and scale manufacturing. Future financial reports, output figures, and new alliances—like its most recent cooperation with SoundHound AI—will all be eagerly watched by investors.
