CFRA Upgrades Lucid Group Inc. (LCID) to Sell, 'we remain bearish on the LCID story'

CFRA analyst Garrett Nelson upgraded Lucid Group Inc. (NASDAQ: LCID) from Strong Sell to Sell with a price target of $1.00.

The analyst comments "We maintain a 12-month target of $1. We raise our opinion one notch to Sell following LCID's 10-trading-day streak of price declines dating back to February 19 (including its February 25 earnings release). In our view, LCID remains nowhere close to even generating a gross profit, as its full-year 2024 gross loss totaled over $90,000/vehicle and its free cash flow was negative $2.9 billion. While LCID's full-year vehicle production guidance of 20,000 units implies a more than doubling from the 2024 total of 9,029 units, we see the company's cash burn rate remaining troublesome. Furthermore, we think a new CEO may want to take the time to review LCID's road map and make strategic changes, but we think LCID's current situation requires urgency in the face of daunting fundamental headwinds and the recent bankruptcies of various EV competitors. While we remain bearish on the LCID story, the stock's implied downside to our price target isn't as material following its precipitous drop over the past couple of weeks."

For an analyst ratings summary and ratings history on Lucid Group Inc. click here. For more ratings news on Lucid Group Inc. click here.

Shares of Lucid Group Inc. closed at $2.10 yesterday.

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