Lucid Motors (NASDAQ:LCID) has carved its name in the luxury EV space after completing a reverse merger with CCIV. The merger gained serious investor interest, with the CCIV ticker reaching heights of $64.86 during the 2020 SPAC boom. Now, as publicly traded company Wallstreet analysts have provided their take on the emerging EV company. Among these analysts, John Murphy from the Bank of America has dubbed Lucid Motors stock as the Ferrari/Tesla of new emerging EV companies.
Bank of America analyst sets $30 price target
Last week, Bank of America analyst John Murphy initiated coverage on Lucid stock with a Buy rating and $30 price target. Murphy noted that Lucid Motors were the “Tesla/Ferrari of new EV automakers.” The analyst also noted that Lucid were “one of the most legitimate start-up EV automakers” currently trading according to theFly.
In Murphy’s analysis, the multiples used for his price target valuation is at a premium compared to Tesla’s (NASDAQ:TSLA) early trading multiples and multiples from Lucid’s peers. Lastly, Murphy added that Lucid’s competitive technology is an attractive product in the Air sedan which holds key advantages over competitors.
The valuation from the BofA analysts suggests a neat 25% upside from the current trading price. As one of the leading financial institutions covering US stocks, this is most definitely a win for shareholders.
CitiGroup analysts confident in Lucid Motors stock outlook
Citi analyst Itay Michaeli is another Wallstreet analyst confident in Lucid stock. The analyst initiated coverage of Lucid Group with a $28 price target. Michaeli says Lucid has the “necessary building blocks” to benefit from the analysts bullish EV thesis. Lucid’s innovative electric vehicle technology, development experience, brand momentum and speed to market are all bullish factors associated with Michaeli’s valuation.
Morgan Stanley highlights obstacles for Lucid Motors stock
In contrast to a bullish outlook from Citi and Bank of America, Morgan Stanley analyst Adam Jonas initiated coverage of Lucid Group with a $12 price target. Morgan Stanley noted that Lucid Motors will continue face head-on competition from EV legacy players in the future. Jonas added that it believes Lucid still has many obstacles to go before the company can compete with EV titans.
Furthermore, although Jonas believes Lucid can occupy a sustainable niche in the premium luxury market, the company still lacks the scale compared to EV giants such as Tesla.
The Bottom Line – Wallstreet maintains a bullish on Lucid stock
In summary, Lucid Motors is entering into an exciting phase of growth for the company with deliveries on the horizon. There is no doubt Lucid Motors is generating interest on Wallstreet, with Citi and BofA setting valuations with 16% and 25% upside respectively.
However, Morgan Stanleys lowered valuation does highlight obstacles Lucid will face over the coming years prior to becoming an EV giant. Nevertheless, we will continue to see coverage on Lucid stock over the coming months as investors continue to speculate on Lucid’s stock forecast over the next 5 years.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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