Lucid Stock Surges Despite Analyst’s Effectively Downgraded Outlook

Lucid Group (LCID) shares jumped 13.8% Friday after Cantor Fitzgerald adjusted its price target, though the MOVE masked a bearish undercurrent. Analyst Andres Sheppard raised his target from $3 to $20—a seemingly bullish revision. The catch: this follows a 1-for-10 reverse stock split that inflated the nominal share price.

The new target implies just 10% upside from current levels, down sharply from the 50% upside projected pre-split. Sheppard maintains a 'neutral' rating, but the math suggests deteriorating confidence. Lucid faces a steep path to profitability, with consensus estimates not forecasting black ink until 2031.

Market reaction appears disconnected from fundamentals—a phenomenon crypto traders know well. Like speculative altcoins, meme stock rallies often defy traditional valuation metrics. The episode underscores how structural events (splits, tokenomics changes) can distort perception while underlying challenges remain.