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New Forecasts: Here's What Analysts Think The Future Holds For Lucid Group, Inc. (NASDAQ:LCID)

Lucid Group, Inc. (NASDAQ:LCID) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Lucid Group will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Lucid Group's 14 analysts is for revenues of US$900m in 2024, which would reflect a substantial 51% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 14% per share from last year to US$1.06. However, before this estimates update, the consensus had been expecting revenues of US$785m and US$1.06 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

Check out our latest analysis for Lucid Group

earnings-and-revenue-growth
earnings-and-revenue-growth

There were no major changes to the US$3.30 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.

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Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lucid Group's revenue growth is expected to slow, with the forecast 51% annualised growth rate until the end of 2024 being well below the historical 96% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that Lucid Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Lucid Group's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Lucid Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. 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 upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.