BofA Securities analysts reaffirmed their Neutral rating and a price target of $3.40 for Lucid Group (NASDAQ:LCID), citing both the company’s potential and challenges in the evolving electric vehicle market.
While the analysts acknowledged Lucid as one of the more promising start-up EV manufacturers, highlighting the company’s strong foundation and experienced management, the analysts also projected a longer timeline for financial stability. BofA now expects Lucid to reach break-even on an operating and cash flow basis no earlier than 2027. In addition, the company would likely need to raise significant capital in the coming years to support its growth and operational goals.
Given these factors, BofA continues to hold a Neutral rating on Lucid, balancing the company’s long-term potential with the financial hurdles it faces.