This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB6R0AQ_M.jpg
CFRA Research cut their 12-month target on LCID by $1.00 to $6.00 and cut 2023 EPS estimates to ($1.60) from ($1.40). CFRA analysts believe that LCID’s weak top line suggests the EV pricing war may be taking its toll.
Analysts at Cantor Fitzgerald remain bullish on Lucid. However, they too lowered their price target on RIVN (to $10.00 from $13.00) due to lower-than-expected revenues, lower margins, and lower production guidance for FY23.
Cantor Fitzgerald analysts wrote in a note, “We continue to believe that the Lucid’s vehicles are able to provide greater battery efficiency, longer battery range, faster charging and more interior space relative to other passenger EVs, which are important differentiators, in our view. However, we are lowering our price target to $10 (from $13) as we become a bit more conservative in the short term amidst lower-than-expected revenues, revised production guidance, persistent negative gross margins, lower-than-anticipated demand and pending liquidity needs (we expect a capital raise within the next 12 months).”
Morgan Stanley maintained an Underweight rating on Lucid with a $5.00 price target following the results. Analysts value Lucid on a DCF with an exit year of 2030 and a 9.2% WACC. Morgan Stanley’s forecasts assume volume of 255k units by 2030, a 51% revenue CAGR (from 2023 through 2030), a 12% EBITDA margin and a 20% discount for execution risk.
Morgan Stanley’s estimates also assume significant inroads into the global luxury market across a number of segments by mid-decade.
Bank of America reiterated a Neutral rating and cut their price target on the stock to $8.00 (From $10.00). LCID’s reported revenue for the quarter was 18% below their $182M estimate as average revenue per unit dropped $21k sequentially to $106k.
Bank of America analysts wrote in a note, “We view the company as one of the most attractive among the universe of start-up electric vehicle (EV) automakers. We also believe LCID has more pieces of the puzzle in place and in process than most of its peers and it is steered by a management team with impressive experience. That said, we now expect it could take until 2027+ for LCID to breakeven on an operating and cash flow basis and it will need to raise more capital sooner than we had expected.”
Shares of LCID are down 9.21% in premarket trading on Tuesday.
