Investing.com - Benchmark lowered its price target on Lucid Group Inc. (NASDAQ:LCID) to $30.00 from $70.00 on Thursday, while maintaining a Buy rating on the electric vehicle manufacturer’s stock. The revised target still represents significant upside potential from the current price of $16, which is hovering just above the 52-week low of $15.25.
The price target reduction follows Lucid’s pricing of $875 million in senior unsecured convertible notes due November 2031, plus a $100 million greenshoe option. The notes carry a 7.00% coupon with approximately 22.5% conversion premium to the $16.99 last sale price, resulting in an initial conversion price of about $20.81, which interestingly aligns closely with the InvestingPro Fair Value assessment for the stock.
Lucid plans to use the proceeds to repurchase a substantial portion of its 1.25% 2026 notes, approximately $756 million in principal for about $752 million in cash, and for general corporate purposes.
The notes will be callable at Lucid’s option on or after November 6, 2028, if the stock trades at least 130% of the conversion price, with settlement options including cash, stock, or a combination.
At full conversion, the new notes would add approximately 42 million shares on the base size, or about 47 million including the greenshoe, assuming the period’s average price meets or exceeds the $20.81 conversion threshold.
In other recent news, Lucid Group reported a notable 68% year-over-year increase in revenue for Q3 2025, reaching $337 million. The company delivered 4,078 vehicles, a 47% rise compared to the previous year. Despite the revenue growth, Lucid’s adjusted EBITDA was a loss of $718 million. Additionally, Lucid announced an offering of $875 million in convertible senior notes due 2031, with a 7% interest rate, aimed at qualified institutional buyers. The company also provided initial purchasers the option to buy an additional $100 million in notes. This financial maneuver is part of Lucid’s broader strategy to manage its capital. Meanwhile, Cantor Fitzgerald lowered its price target for Lucid Group from $26 to $21, maintaining a Neutral rating. The decision was influenced by Lucid’s revised production guidance and missed earnings expectations.
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