Lucid Group Earnings Preview: Is it time to buy LCID stock?
- LCID stock gains over 3% in broad market recovery.
- Fed clears the path for risk assets to recover.
- Lucid Group stock set for more gains if it can produce solid earnings on Thursday.
Lucid Group followed the market in gaining just over 3% on Thursday. However, this was not a stock-specific move but rather a relief rally as the Fed proved to be more dovish than many investors had feared. This opened the way for a massive risk-on rally and the riskier side of the market took a badly needed breather.
This is likely to continue for at least a few days but bond yields have not moved significantly lower even at the short end of the curve, so bulls will need to be more selective going forward.
Lucid (LCID) stock news: Best-case scenario is vehicle production unchanged
Lucid will release earnings after the close on Thursday. These will naturally be closely watched but even more so after the last set of earnings. Back on February 28, Lucid Group slashed its production guidance to 12 to 14k vehicles for 2022 when analysts had been expecting over 20k. So the question remains, did Lucid kitchen sink the bad news and get the worst case out there (a clever strategy), or is there more bad news to come? Certainly, supply chain issues have worsened since the Feb 28 release. So we do not see any retro upgrade to this delivery estimate.
The best case is that it remains unchanged, but that is a big ask to the numbers, even though we place less emphasis on them as Lucid is basically a start-up. It all about ramping up production to achieve profitability over the next few years.
For a comprehensible technical analysis on LCID stock, read Wednesday's Lucid earnings preview.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
