Lucid Group (NASDAQ:LCID) has made some impressive strides so far as an electric vehicle stock. But despite these advances, not everyone believes that its future outlook is bright. Just ask Robert W. Baird analysts, who put out a less-than-complimentary opinion. Investors didn’t take that well either and pulled over 3% out of Lucid shares as a result.
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The word came from Ben Kallo, who tipped the scales on Lucid Group stock firmly with a “neutral” rating and a price target of just $7 per share. The news Kallo offered wasn’t all bad; he specifically noted that Lucid Group has some outstanding technology. Things like the modular battery pack, the Wunderbox charging system, and the best drivetrain around add up to make Lucid a real winner in the tech stakes. However, Kallo noted even the best in tech can only go so far against market conditions.
Kallo noted that Lucid suffers from a very high entry fee for customers. That puts it even farther into the “niche market” status, and when you couple niche market operations with a skimming pricing strategy, you get a handful of people paying fistfuls of cash, which only adds up to so much profit. However, Kallo does look for better consumer health coming up—based on what is somewhat unclear—as well as economies of scale starting to kick in for Lucid to make getting more cars in play at lower prices a clear possibility. When consumer health improves and Lucid can take better advantage of dealing in bulk, then Lucid will be a name to watch for, Kallo asserts.
Now, with Kallo weighing in, analyst consensus has shifted somewhat. With two Buy ratings, three Holds, and two Sell, Lucid Group stock is now a Hold as per analyst consensus figures. Further, Lucid Group stock offers investors 21.05% upside potential thanks to an average price target of $7.36.
