Car rates

Citi is bullish on Lucid Stock. Where’s the rest of Wall Street?

Text size

A Lucid Air Grand Touring electric luxury car.

Patrick T. Fallon / AFP / Getty Images

Citigroup remains optimistic on the start of electric vehicles


to start the new year. Analyst Itay Michaeli took over the cover of Lucid with a buy note and a price target of $ 57.

Lucid stock (ticker: LCID) rose 7.6% on Monday. the

S&P 500


Dow Jones Industrial Average

increased by about 0.6% and 0.7%, respectively.

Analysts can suspend coverage of a stock for a number of reasons, the primary one being the requirement to do so when the bank is working with the company on a large project. Citi declined to comment on the reason for Michaeli’s recent coverage suspension.

But it’s back, and the target price of $ 57 is the highest on Wall Street, according to Bloomberg and FactSet. Lucid targets are everywhere, ranging from around $ 16 to $ 57 per share.

It doesn’t help investors much. The number of notes doesn’t help much either. According to Bloomberg, there are only four people who cover Lucid stocks. Two buy rate stocks, one has a keep rating and the other has a sell rating.

Lucid stocks, however, are valued at around $ 63 billion. An auto company of this size should have more than 20 analysts covering the stock.

Rivien Automobile

(RIVN), another EV startup, has around 15 analysts covering the stock.

Rivian, however, was publicly traded in a traditional initial public offering. Lucid went public through the SPAC merger. This may be one of the reasons for the difference in coverage. Still, Lucid completed its merger months ago. It’s a little odd, frankly, that so few have taken the cover of a stock that’s worth so much.

The price target of $ 57 values ​​Lucid at around $ 100 billion. This would make it one of the most valuable car manufacturers on the planet.

“We are constructive on the history of Lucid and its position in the EV / Car of the Future theme,” the analyst wrote in a report on Monday. He believes Lucid has some of the best range and charging performance in the industry, along with strong self-driving features developed in-house.

Still, he notes that Lucid is on pre-sale. The company is set to deliver volume for its first luxury sedan, the Lucid Air, in 2022. For now, Michaeli prefers the potential of Lucid to the more established EV player.

You’re here

(TSLA). Michaeli is actually evaluating the sale of Tesla shares. Its recent Tesla price target was $ 262, valuing the stock at around $ 262 billion.

Write to Al Root at [email protected]