Is Lucid still a buy? Analyst praises tech, cuts price.

TLDR:

Analyst at Stifel lowered price target on Lucid Group Inc (LCID) to $4 from $5 while maintaining “hold” rating.

• Stifel sees positives in Lucid’s technology and cost control.
• Lucid reported revenue of $157.2 million in Q4 and plans to produce 9,000 vehicles in 2024.

In a recent report, brokerage firm Stifel lowered the price target on electric vehicle maker Lucid Group Inc (LCID) to $4 from $5, while maintaining its “hold” rating. Stifel highlighted the positives of Lucid’s technology, including the availability of a lower-priced version of the flagship Lucid Air sedan and the potential for additional licensing agreements. Despite these positives, the firm is holding back from changing its rating to a buy due to concerns about the company’s cash burn.

Lucid reported revenue of $157.2 million in the fourth quarter, which missed consensus estimates, but had a better-than-expected loss per share. The company is aiming to produce 9,000 vehicles in 2024, higher than the previous year. Lucid’s stock closed up 4.3% on Monday and rose 1.59% in Tuesday’s premarket trading, but is down 24.1% year-to-date.