Lucid Group price target lowered to $2 from $3 at RBC Capital

RBC Capital lowered the firm’s price target on Lucid Group (LCID) to $2 from $3 and keeps a Sector Perform rating on the shares. Cost optimization programs at the Arizona factory were a part of the company’s profitability improvement last quarter, the analyst tells investors in a research note. Lucid has also transitioned its battery enclosure manufacturing and various subassemblies on-site, and is transitioning powertrain manufacturing to be fully on-site, with the initiatives expected to “yield benefits including logistics”, RBC adds. The firm notes however that its lower price target reflects shares coming under pressure post-election and subsequent press surrounding the new administration’s desire to curb the IRA and credits to consumers for EV purchases.