Wall Street analysts are holding a slightly bearish outlook on Lucid’s (NASDAQ:LCID) stock over the next year as the equity continues to experience increased volatility.
Currently, LCID remains below the key resistance level of $3, struggling to reclaim its yearly high of $3.48. As of press time, LCID shares were trading at $2.56, down 3.7% from the last market close. Year-to-date, the stock has plunged 15%.
While Lucid faces stiff competition from established players like Tesla (NASDAQ:TSLA), several underlying fundamentals suggest potential for future growth.
Notably, the recent release of its Gravity SUV is expected to boost sales significantly. Analysts project a 73% increase in 2025, followed by another 96% jump in 2026.
Lucid’s upcoming mass-market vehicle launches could also help the company capture a larger EV market share, potentially encroaching on Tesla’s dominance.
As for the stock price outlook, Wall Street analysts surveyed by TipRanks present a mixed view.
Based on a consensus of 10 analysts, the average price target for LCID is $2.54, representing a slight downside of 0.78% from its current level.
Price targets range widely, from a low of $1 to a high of $5. Despite the muted average forecast, sentiment overall leans toward a ‘Hold’ rating. Of the 10 analysts, seven recommend holding LCID stock, two advise selling, and just one suggests buying.
Among them, Needham’s Chris Pierce maintained a ‘Hold’ rating on May 7 following Lucid’s Q1 earnings report.
He cited the 35.7% year-over-year revenue growth and the promising Gravity SUV rollout as positives that could help revive the brand and boost production. However, Pierce remained cautious due to Lucid’s valuation, trading at roughly 12.5 times the projected 2029 EBITDA, adjusted to present value.
Similarly, Stifel’s Stephen Gengaro reiterated a ‘Hold’ rating on May 12, setting a $3 price target. The analyst highlighted Lucid’s strong Q1 2025 performance, effective cost management, and progress toward production targets. Still, he flagged high cash burn and potential capital needs as key risks.
Meanwhile, TD Cowen initiated coverage on May 8 with a ‘Hold’ rating and a $2.30 target. Analyst Itay Michaeli described the Gravity launch as a potential turning point but raised concerns over its steep starting price of nearly $95,000. Michaeli warned that the stock may struggle to gain momentum without strong early sales.
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