The big tech high drama of this earnings season is already well behind us but there are still some interesting Q3 reports to pore over. Once today’s market action comes to a stop, Lucid (LCID) will release its quarterly financial statement.
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Like many others, the stock has been through a tumultuous year – down by 63%. The performance has not been helped by logistic issues and supply chain snags which have impeded progress and led to several downward revisions. First, the company lowered its production forecast for 2022 from 20,000 units to between 12,000 and 14,000 vehicles, and then reduced the outlook from that figure down to the range between 6,000 and 7,000.
That should be the end of it, however, as the company intimated it is on track to meet the latest target when it released Q3 production numbers in October. The company said it made 2,282 vehicles in the quarter, more than tripling Q2’s haul, while during the period it delivered 1,398 vehicles. These numbers met company expectations.
Investors might have been turning away during the year, but ahead of the print, Cantor analyst Andres Sheppard remains in Lucid’s corner. Noting the company’s flagship Lucid Air’s “industry-leading” ability to reach a range of up to 520 miles on just one charge and the big commitment made by the government of Saudi Arabia to buy “up to” 100,000 vehicles over a 10-year timeframe, the analyst lays out the bullish case.
“Overall,” said Sheppard, “we continue to believe that LCID’s vehicles are able to provide greater battery efficiency, more space relative to peers, as well as longer range, and faster charging due to its vertically integrated in-house manufacturing approach. Additionally, we see the commitment from Saudi Arabia as a meaningful agreement, and one that will help LCID ramp-up production quickly.”
So, how does this all translate to investors? Sheppard rates Lucid shares an Overweight (i.e., Buy) while his $23 price target suggests shares have room for ~66% growth in the year ahead. (To watch Sheppard’s track record, click here)
Overall, Lucid gets a Hold (i.e. Neutral) rating from the analyst consensus, based on 3 Buys, 2 Sells, and 1 Hold set in the past three months. Going by the $18.80 average target, however, the stock is expected to yield returns of ~35% over the one-year timeframe. (See Lucid stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
