Lucid stock (NASDAQ: LCID) is trading near all-time lows at around $6 per share after peaking at $58 in November of last year.
With weaker-than-expected Q2 deliveries and revenue, the downward pressure seems to mount.
Wall Street analysts, however, are optimistic and see a price increase in the next 12 months.
The average analyst target price sees a 32% gain
Analyst consensus on Refinitiv has a ‘hold’ rating for the Lucid stock based on 13 analyst ratings in the past three months. Their average price target is $8.20, or 32% higher than the current price of $6.20.
Lucid confirmed the production of 10,000 or more vehicles in 2023 in its Q2 report, which is a positive signal no doubt taken into consideration by analysts. The company also raised $3 billion in Q2 to extend its runway. The new capital raise gives Lucid total cash and investments of $5.5 billion, which is enough to extend the company’s liquidity runway from FY 2024 to FY 2025.
Another positive sign could be institutions buying Lucid shares. In Q2, BlackRock bought 10.99 million shares of Lucid in Q2, bringing its total stake to 45.33 million shares. This makes BlackRock one of the top five largest holders of Lucid stock.
Meanwhile, the California Public Employees’ Retirement System, which is the largest US public pension fund, also bought more Lucid shares in Q2.
LCID stock technical analysis
Lucid stock has been trading downward since November 2022. It currently trades in a triangle pattern, which is typically a neutral pattern as the price can break out on either side. The pressure is still downward, though, which makes a break on the lower side more likely. But confirmation is needed first.
Despite bearish pressure, LCID has returned 1% year to date, underperforming the S&P 500’s 14% return during the same period.
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