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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Lucid Group Inc.
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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Lucid Group Inc.
Aug 6, 2025 11:22 AM

01:55 PM EDT, 08/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month target of $1, reflecting a premium to our DCF valuation and its tangible book value of $0.78/share as of June 30, 2025. We lower our adjusted EPS estimates to -$1.05 from -$1.00 for 2025 and to -$1.10 from -$0.85 for 2026. Following a Q2 miss and reduced 2025 vehicle production guidance, we are lowering our estimates and reiterating our Sell rating on LCID. We highlight that LCID's production will have to nearly double from the first half total of 6,075 units to 11,925 units in the second half of 2025 just to hit the low end of its new full-year guidance of 18,000-20,000 units, which we think could prove challenging. While management's tone was upbeat, highlighting that Q2 marked LCID's sixth consecutive quarter of record deliveries and saying it expects to continue this trend as it ramps up Lucid Gravity production in the second half of the year, the reality is that the company continues to burn through liquidity at an alarming rate ($900M in Q2) and demand is a major problem.

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