Cantor Fitzgerald raises Lucid stock price target to $20 after reverse split

Lucid Group (LCID) recently completed a 1-for-10 reverse stock split, intended to attract institutional investors, prompting Cantor Fitzgerald to raise its price target to $20.00. While the EV manufacturer reported a Q2 2025 net loss of $(739.3M), it maintains strong liquidity and secured a $300 million investment from Uber for joint robotaxi development. This strategic diversification occurs amid significant stock volatility and mixed analyst sentiment, as Lucid aims to enhance its market appeal despite ongoing losses.

Analysis

Lucid Group (LCID) has executed a 1-for-10 reverse stock split, a strategic move aimed at increasing its per-share price to attract a broader base of institutional investors. This corporate action prompted a mixed analyst response: Cantor Fitzgerald maintained a "Neutral" rating but adjusted its price target to $20.00 from $3.00, while Stifel maintained a "Hold" rating but reduced its price target to $2.10 (pre-split basis), citing gross profit and EBITDA misses. Financially, Lucid's second-quarter 2025 results revealed a net loss of $(739.3M), which was narrower than analyst estimates but represented a wider loss compared to the $(643.4M) from the same quarter in the prior year. Despite ongoing losses, the company maintains a strong liquidity position with more cash than debt. A key strategic development is the $300 million investment from Uber to co-develop a robotaxi, signaling diversification and a capital infusion. This occurs against a backdrop of significant stock underperformance, with a -55.48% return over the past year, though the article suggests potential undervaluation based on some fair value metrics.

Key Decisions for Investors

• Investors should recognize the reverse stock split is a cosmetic change intended to improve institutional appeal, not a fundamental one, and must remain cognizant of the stock's significant historical volatility.
• Carefully weigh the positive strategic developments, such as the capital-infusing Uber robotaxi partnership and a strong liquidity position, against the fundamental weakness of persistent and widening quarterly net losses.
• Focus on future gross profit and adjusted EBITDA trends in upcoming earnings, as these metrics were highlighted by Stifel's analysis as key weak points despite a slight revenue beat.
• Given the mixed analyst ratings and high volatility, any position should be considered a high-risk holding, contingent on management's ability to translate strategic initiatives into a clear path toward profitability.