Brokerage firm Stifel on Monday lowered the price target on EV maker Lucid Group Inc (NASDAQ:LCID) to $4 from $5 while maintaining its "hold" rating.
What Happened: The brokerage sees several positives for Lucid despite the downward outlook for EV sales in the near term. The positives include the availability of a lower-priced rear-wheel drive version of the company's flagship Lucid Air sedan starting at $69,900 and its focus on controlling costs.
The brokerage believes the company has the best-in-class technology which has the potential for additional licensing agreements. Further, the company is eyeing production of its Gravity SUV in the later part of this year, the brokerage noted.
However, despite the positives, Stifel is holding back from changing its rating to a buy, partly due to the company's cash burn.
How Is Lucid Doing: For the fourth quarter, Lucid reported revenue of $157.2 million, which missed the consensus estimate, and a better-than-feared loss of 29 cents per share. The company's total cost and expenses in the quarter amounted to $894 million.
The company is looking to produce 9,000 vehicles this year, higher than the 8,428 vehicles it made in 2023.
Price Action: Lucid shares closed up 4.3% at $3.15 on Monday, and rose 1.59% in Tuesday's premarket, according to data from Benzinga Pro. However, the stock is down 24.1% year-to-date.
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