Lucid (LCID) Stock: Analyst Reduces Price Target Following Q2 Results

TLDR

Table of Contents

Stifel cuts Lucid price target to $2.10 from $3.00, maintains Hold rating
Lucid stock down 34% year-to-date, fell 9% since Q2 earnings report
1-for-10 reverse stock split effective September 2 to meet Nasdaq requirements
Company reduced 2025 production outlook to 18,000-20,000 vehicles from 20,000
Analyst awaits clarity on Gravity SUV sales and midsize vehicle launch before turning positive

Lucid Group faces mounting pressure as analyst firm Stifel lowered its price target while the electric vehicle maker prepares for a reverse stock split. The moves come after disappointing quarterly results and production cuts that highlight the company’s ongoing struggles.

Stifel analyst Stephen Gengaro reduced his price target on Lucid to $2.10 from $3.00 per share. The four-star analyst maintained a Hold rating on the stock. The revised target translates to $21.00 post-split given Lucid’s upcoming reverse split.

Lucid’s 1-for-10 reverse stock split takes effect in trading on September 2. The move became effective on August 29 after being announced on August 21.

The reverse split aims to keep Lucid in compliance with Nasdaq’s minimum bid price rule. While it lifts the per-share price on paper, it doesn’t change the company’s overall market value.

Production Cuts Signal Market Challenges

Lucid reduced its 2025 production outlook to 18,000-20,000 vehicles from its earlier target of 20,000. Gengaro said this change reflects market volatility and industry headwinds weighing on the EV space.

The company’s Q2 revenue came in slightly above expectations at $259.43 million. However, both gross profit and adjusted EBITDA fell short of analyst forecasts.

Lucid reported a loss of $2.80 per share for Q2, missing analyst estimates of $2.20. The company’s negative net margin reached 259.57% with a negative return on equity of 79.40%.

Revenue for the quarter was up 29.3% year-over-year compared to the same period last year. Analysts expect Lucid to post -1.25 earnings per share for the current year.

Technology Strengths Overshadowed by Capital Needs

Despite near-term pressures, Gengaro expressed belief in Lucid’s technology and products. He described the Air sedan and upcoming Gravity SUV as “excellent products.”

The analyst warned that Lucid will likely need additional capital over the next few years. This funding would support operations and growth initiatives.

Lucid shares have declined 34% year-to-date as of September 1. The stock also fell about 9% since reporting Q2 results on August 5.

Trading volume on Thursday reached 20,428,800 shares, down 82% from the average daily volume of 114,661,500 shares. The stock traded as low as $2.03 and closed at $2.06.

Institutional ownership stands at 75.17% of outstanding shares. Several institutional investors modified their holdings during recent quarters, with some increasing positions.

Analyst Outlook Remains Mixed

Wall Street analysts maintain a consensus Hold rating on Lucid stock. The rating includes two Buy recommendations, eight Hold ratings, and one Sell rating issued over the past three months.

The average price target of $3.14 implies 58.59% upside from current levels. Cantor Fitzgerald reissued a neutral rating with a $30.00 price target post-split.

Gengaro said he’s waiting for more clarity on Gravity SUV sales. He also wants to see the launch of Lucid’s planned midsize vehicle before becoming more positive.

The stock has a 50-day moving average of $23.34 and a 200-day moving average of $24.07. Lucid maintains a current ratio of 2.58 and a debt-to-equity ratio of 0.92.

The reverse stock split will adjust the number of shares owned by shareholders after market close on August 29.

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