Yahoo Finance Analyst Forecasts Just Became More Bearish On Lucid Group, Inc. (NASDAQ:LCID)
Today is shaping up negative for Lucid Group, Inc. (NASDAQ:LCID) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the current consensus from Lucid Group's 13 analysts is for revenues of US$735m in 2024 which - if met - would reflect a decent 19% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.09. However, before this estimates update, the consensus had been expecting revenues of US$889m and US$1.07 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
Check out our latest analysis for Lucid Group
The consensus price target fell 7.5% to US$3.02, implicitly signalling that lower earnings per share are a leading indicator for Lucid Group's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lucid Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Lucid Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 26% growth on an annualised basis. This is compared to a historical growth rate of 81% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. So it's pretty clear that, while Lucid Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Lucid Group. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Lucid Group after today.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Lucid Group analysts - going out to 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
