Bank of America (NYSE:BAC) (BofA) on Monday raised its price target on Lucid (NASDAQ:LCID) shares from $3 to $3.55, maintaining a neutral rating on the electric vehicle maker’s stock. Based on the previous closing price, the new price target implies about 2% upside potential.
In a new research note, the bank revealed that it has lowered its U.S. sales and production estimates due to recent macroeconomic developments.
Lucid delivered 2,394 cars in the second quarter while producing 2,110 units, beating Wall Street analysts' expectations.
The electric car maker is scheduled to release its second-quarter financial results on Aug. 5 after the market closes via a conference call with management following.
Ahead of earnings, Bank of America expects the slow start to the year to continue into the second quarter, in line with recent comments from management.
In early April, when Lucid announced 1,967 vehicle deliveries in the first quarter, the analyst lowered his price target to $3.50 from $4.50 while maintaining a neutral rating on the stock.
Bank of America expects near-term pressure on supplier results, due to continued light production schedules across the industry.
Last week, a Cantor Fitzgerald analyst reiterated his $4 price target, with the company's shares remaining cautious about the electric-vehicle maker's profitability outlook.
Additionally, Lucid’s capital requirements remain a pressing issue. The company is only funded through Q2 2025, suggesting that additional capital increases will be necessary to sustain operations and continue its growth trajectory.
