If you want to take a ride in what some auto experts consider the best electric vehicle (EV) manufactured so far, then seek out the Lucid Air Dream Edition, Lucid Motors’ (LCID) luxury offering. If you’re looking for any thrills without actually getting in a car, just buy Lucid shares. The stock has been on one big rollercoaster ride since going public via the SPAC route last July.
Ultimately, with the EV stock suffering like the rest in its cohort, following some unruly surges, the share price has landed roughly where it was when it started trading.
Lucid has garnered plenty of attention from investors, then, and Morgan Stanley’s Adam Jonas says investors should get ready for more seesawing action.
“We would prepare for high levels of volatility around the share price given the stock’s unusually low free float, high short interest and what we believe to be a steadfast/strategic commitment by its 63% controlling shareholder,” the 5-star analyst said ahead of Lucid’s Q4 results.
The EV maker will report the quarter’s financials next Monday (February 28) and based on Jonas’ channel checks and “anecdotal information,” the analyst thinks investors anticipate Q4 deliveries of the Air will be “well below” the guide. “While not disclosed by the company,” said Jonas, “We’d peg the ‘street’ number for 4Q deliveries in the 200-unit range.”
Jonas thinks a delivery miss will be no “big deal,” believing the focus will turn to the FY22 delivery guidance.
The company has guided for 20,000 deliveries in FY22, and Jonas “encourages” investors to look at the 20,000 figure as a “bull case/stretch goal but one that we would not rule out management reiterating.” Another important sentiment indicator will be the state of reservations, which as of mid-November, stood at 17,000.
Ahead of the print, Jonas’ rating remains an Underweight (i.e. Sell) while his $16 price target – the Street’s most bearish – suggests shares will be changing hands for a 38% discount a year from now. (To watch Jonas’s track record, click here)
On the other hand, Jonas’s colleagues see shares rising by almost the same amount. The one-year forecast calls for returns of 41%, given the average price target stands at $36.50. Overall, the analyst consensus rates the stock a Hold, based on 3 Holds and 1 Buy and Sell, each. (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.
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