Lucid Group (LCID) is Heading Toward a $97 Billion Market Capitalization, as per the Latest Research Note From Bank of America

Lucid Group (NASDAQ:LCID), a producer of luxury EVs as well every bit mass free energy storage systems, just received a resounding endorsement from Bank of America (BofA).

To wit, BofA analyst John White potato has now hiked the stock cost target for Lucid Group shares from $thirty to $60 while retaining an overall 'Purchase' rating. Interestingly, the new target corresponds to a market capitalization of $97.11 billion.

The analyst stated in the just-released investment note:

"Our $sixty PO for LCID is now based on ~8.5x EV/Sales (prior ~3x) and ~104x EV/EBITDA (prior ~37x) on our 2025 estimates (at present using a forwards Balance Sheet), implying ~1x EV/Sales and ~6.5x EV/EBITDA on pro-forma capital-induced 2030 estimates."

Deport in mind that BofA had dubbed Lucid Group a "Tesla/Ferrari of new EV automakers" and "ane of the most legitimate start-upward EV automakers" back in September. While conceding that BofA'southward Lucid Group multiples were at a premium to those accorded to Tesla when Elon Musk's company was still at a nascent stage, Murphy had noted at the time that those multiples remained at a "notable discount" to Tesla's contempo valuation metrics on a forward five-year basis.

Currently, Banking company of America is joined by Citi and CFRA Enquiry in maintaining an overall 'Buy' rating on Lucid Group shares. However, Morgan Stanley's Adam Jonas – a veritable Tesla permabull – still remains the outlier with a ridiculous $12 stock toll target. While Jonas concedes that Lucid Group might occupy a sustainable niche in the highly competitive EV market, he continues to affirm that the road ahead would likely be littered with "many obstacles." Jonas also expects Lucid Group to raise boosted capital for the Phase 3 expansion of its Casa Grande facility, which would increase its manufacturing capacity to 365,000 units per annum.

Lucid Group bulls are at present sure to turn their attention toward next week when the company announces its first earnings every bit a public entity. While Air EV deliveries have now commenced to a select grouping of reservation holders, investors still desire more clarity on the company'south futurity expansion strategy and production ramp-upwards.

Source: https://wccftech.com/lucid-group-lcid-is-heading-toward-a-97-billion-market-capitalization-as-per-the-latest-research-note-from-bank-of-america/

Posted by: pierceclightte1940.blogspot.com