- The stock price of Lucid Group Inc (NASDAQ: LCID) increased today. This is why it happened.
The stock price of Lucid Group Inc (NASDAQ: LCID) increased by over 5% today. Investors are responding positively to a bullish research report.
BofA analyst John Murphy had initiated coverage of Lucid Group with a “Buy” rating and $30 price target. The price target represents more than a 58% upside to the previous stock price close.
Murphy noted that Lucid Group is the “Tesla/Ferrari of new EV automakers,” according to TheFly. And Murphy believes that Lucid is one of the “most legitimate start-up EV automakers.”
However, Murphy acknowledged that the multiples used for establishing his price target are at a premium compared to Tesla’s early trading multiples and compared to average multiples from other electric vehicle maker SPAC companies. But Murphy said it is still at a notable discount to Tesla’s recent trading multiples on a forward 5-year basis.
Along with the management team’s experience, Murphy listed the company’s innovative and competitive technology validated by Formula E as an interesting and attractive product in the Air sedan. And the “arguably intangible value in the Lucid brand” is one of the company’s key competitive advantages.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.