By Michael Dabaie
Lucid Group Inc. shares were up 8.4%, to $41.24, in Monday afternoon trading after Citi resumed converge of the electric vehicles company with a "Buy/High Risk" rating and $57 price target.
Citi said it is updating its model to reflect a recent capital raise and made no changes to its prior thesis.
Lucid last month said its offering of $1.75 billion of 1.25% convertible senior notes due 2026 priced.
"Fundamentally, we are constructive on the Lucid story and its position in the EV/Car of the Future theme," Citi said. The firm cited EV tech credentials, benefits for its speed-to-market with Lucid's first vehicle, the Air, launching later this year and an advanced and comprehensive sensor suite.
Citi added that Lucid needs to successfully navigate production ramp-ups.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
01-03-22 1421ET