Lucid Group (NASDAQ: LCID) is being compared to Tesla’s EV leader and Bank of America’s legendary Italian performance vehicle company Ferrari, which today began hedging the shares of the electric vehicle company. Bank of America coverage predicts lucid stocks will rise 50% in the coming years as the company has high expectations from analysts.
Lucid, led by CEO and office manager Peter Rawlinson, a former Tesla employee, will launch its first vehicle, the Air, later this year. After the company was publicly listed in early 2021 following a merger with Churchill Capital Corp. IV, analysts have begun to break down the company’s potential in an emerging electric vehicle market. Bank of America said the company is undoubtedly a competitive and reputable threat to other companies such as Tesla, Rivian and Ford.
Bank of America said in its note to investors that Lucid’s “innovative technology, an attractive product, an attractive brand, a clean sheet manufacturing approach and impressive management” are key factors in the company’s quest to convert -be at number one in the sector. With outstanding and experienced executives, a quality product with Air Dream Edition and a large-scale manufacturing plant in Casa Grande, Arizona, Lucid has all the ingredients for success. The question is whether the company can continue production as it has many advantages.
Bank of America analysts have a bullish view of Lucid based on an EV / sales ratio of around 3.0x and a multiple EV / EBITDA of about 37x for the 2025 estimates. Analyst John Murphy said: “These are a premium for the first TSLA trading multiples and for the average multiples of EV OEM SPAC peers, but still a significant discount for the last TSLA trading multiples (five-year basis onwards), which reflect the our LCID view of the most legitimate EV car manufacturers. ”The analyst also called Lucid the“ Tesla / Ferrari of new car manufacturers ”and stated that the company is“ one of the newly created electric vehicle manufacturers more legitimate “.
Lucid announces the air production preview event in late September
Lucid had its first coverage started late last week by CFRA analyst Garrett Nelson. In his note, Nelson said Lucid has many competitive advantages that derive from its first-class specifications in its upcoming luxury EV models, a strong balance sheet and management team, and a new factory in Arizona. ”Nelson he also added that “LCID seems to mark all the boxes of a newcomer to the industry with permanent power.” However, CFRA is also aware of the tough road it could find based on Tesla’s “formidable competitive pit” , which will likely slow down its projected momentum.
Lucid is priced at $ 30 from Bank of America’s Murphy. John Murphy ranks 1,070 out of 7,641 analysts and has a success rate of 62% and an average return of 12.1%, TipRanks he says.
Disclosure: Joey Klender is not a shareholder in LCID and has no plans to take any position.
