Connect with us

Energy & Critical Metals

Can Supercharged Lucid Stock Keep Moving Higher Post Earnings?

Lucid Group (NASDAQ:LCID) announced on Oct. 27 that deliveries of its Lucid Air electric vehicle for U.S. customers would begin on Oct. 30. Since that…

Published

on

This article was originally published by Investor Place

Lucid Group (NASDAQ:LCID) announced on Oct. 27 that deliveries of its Lucid Air electric vehicle for U.S. customers would begin on Oct. 30. Since that announcement, LCID stock is up 67%, heading into its third quarter 2021 earnings report due after the markets close on Nov. 15.

The Lucid Motors (LCID) Plant in Arizona.Source: Around the World Photos / Shutterstock.com

While the deliveries news is exciting for shareholders to see, it seems that investors are expecting big things from CEO Peter Rawlinson and the rest of the company. It starts with the Q3 2021 press release and subsequent analyst conference call today.

Can LCID maintain its supercharge and keep moving higher post-earnings? I believe it can. Here’s why.

LCID Stock Hits $60

Lucid is trading pennies below $45, up almost 10% on the day as I write this. To get to $60, it needs to jump another 33%. As we’ve seen in the past month, it’s more than capable of meeting this target.

Now, I’m not the one suggesting its stock will hit $60. It’s Bank of America Merrill Lynch analyst John Murphy. InvestorPlace’s Eddie Pan recently covered some of his comments about the luxury EV manufacturer.

Murphy, who is lead U.S. auto analyst at the brokerage, upped his forecast for the enterprise value-to-sales multiple from 3x to 8.5x while increasing his EV/EBITDA to 104x from 37x previously. That’s a considerable step up.

Assuming $60 is a done deal, what’s it got to do in terms of sales and deliveries to hit the target?

Well, based on 1.62 billion shares outstanding, it would have a market capitalization of $97.2 billion ($60 multiplied by 1.62 billion) and an enterprise value of $96.2 billion based on zero debt — it does have a convertible promissory note worth $1.2 billion as of June 30 — and $1 billion in cash on its balance sheet.

So, using the EV/Sales multiple of 8.5x, Lucid’s sales would have to reach $11.3 billion. That’s billion with a “B.” But, based on the 520 cars it’s delivered and a price tag of $169,000, it’s less than 1% of the way there.

According to my colleague’s report, Murphy’s estimates are based on 2025 sales. So unless something terrible happens between then and now, $60 by 2025 looks pretty conservative. That’s 66,864 deliveries annually by 2025.

Elsewhere on here on InvestorPlace, Mark Hake pointed out recently that Lucid expects 20,000 deliveries by the end of 2022. So to get to 66,864 by the end of 2025, it would need to grow them by 50% a year between 2023 and 2025.

It’s doable.

The Other Analysts

As Eddie’s article stated, there are also price targets of $35, $28 and $12 from Wall Street analysts. The four give LCID an “overweight” rating with an average target price of $33.33.

So, something has to give come today’s Lucid’s Q3 2021 earnings.

Either, LCID stock gets crushed, which is unlikely given investors already know there is very little revenue data to go on at the moment. However, that will undoubtedly change in the quarters to come.

Or, conversely, analysts like what they hear from CEO Rawlinson about Lucid Group’s future and up their targets from where they currently sit. The latter scenario seems more likely.

That said, I could see LCID stock correcting back into the $30s on the news, building volumes for the next leg up.

InvestorPlace contributor Louis Navellier recently made an interesting sidebar to earnings when he brought up the trillion-dollar infrastructure bill that passed on Nov. 9.

“Perhaps it’s not something that directly improves the company’s fortunes, but it helped to bolster enthusiasm for EV stocks in general. It was also enough to give LCID stock an added jolt. This ultimately gave it enough momentum to sustain its rally up to $48 per share,” Navellier stated on Nov. 11.

My colleague noted that Tesla (NASDAQ:TSLA) was having issues scaling production as recently as 2020, so it’s unrealistic to think Lucid will go from less than 1,000 deliveries today to 250,000 by 2026 without a whole lot of volatility and hiccups in its business plan.

Can it keep moving higher post-earnings? I suppose it can.

However, the realist in me says it falls back some and takes a breather. So if you can get some shares in the $30s, and you’re an aggressive investor, I would do so.

It’s an excellent long-term speculative buy.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

More From InvestorPlace

The post Can Supercharged Lucid Stock Keep Moving Higher Post Earnings? appeared first on InvestorPlace.

Author: Will Ashworth

Articles

The Buckingham Graphite Project – Noble Mineral Exploration (TSX.V: NOB)

CEO, Vance White and Exploration Manager, Wayne Holmstead had us out to the Buckingham Graphite property to highlight the opportunity it presents the company….

CEO, Vance White and Exploration Manager, Wayne Holmstead had us out to the Buckingham Graphite property to highlight the opportunity it presents the company. Graphite of this quality will be in high demand as several auto manufacturers have publicly stated they will shift to EV’s by 2030. Furthermore, the Quebec government is already taking steps to ensure that Quebec is a leader in Battery metals, manufacturing and clean energy.

About The Buckingham Graphite Project

The Buckingham graphite property is located in the Outaouais area of the Grenville Subprovince of Quebec. It consists of 30 claims (1803 hectares) and contains 3 separate graphite occurrences. The main occurrence (McGuire) was worked by Stratmin Inc. in 1985-86 when a ground electromagnetic survey was done following a regional airborne survey. Three diamond drill holes were completed to intersect the electromagnetic anomalies, 2 of which intersected graphite mineralization which was found to be hosted by marble and gneissic rocks.

Although the nature of the graphite on the Buckingham Property has not been determined, graphite concurrences in this area are normally coarse grained, flake graphite. This type of graphite is the most desirable of the naturally occurring types that is used to produce lithium-based batteries. Lithium-based batteries are required for a variety of ‘green’ technologies, including electric vehicles. The global demand for these types of products is expected to rise as world governments lean towards environmentally friendly products rather than petroleum-based ones.

The second graphite occurrence (Cummings) is described as a “deposit in the form of narrow bands of graphite occurring in gneiss and marble over a length of 300 m and a width of 30 m. The graphite occurs in several irregular bands within the 30 m zone.” The Cummings Occurrence is located about 1.5 km southeast of the McGuire Occurrence.

The third graphite showing on the property is called the Robidoux Occurrence and is located about 4 km east of the McGuire Occurrence. It was described by the Quebec Superintendent of Mines in a 1910 report as a “partially uncovered graphitic bed over a length of about forty feet. Some shallow pits have also exposed graphitic outcrops, presumably of the same bed, for an additional distance of 75 to 100 feet. The bed where exposed by the main stripping is about four feet thick and dips into the side of a low hill at an angle of 40 to 50 degrees.” It was also noted that “the graphite ore contains over 30% carbon.”

About Noble Mineral Exploration

Noble Mineral Exploration Inc. is a Canadian-based junior exploration company which, in addition to its shareholdings in Canada Nickel Company Inc., Spruce Ridge Resources Ltd. and MacDonald Mines Exploration Ltd., and its interest in the Holdsworth gold exploration property in the Wawa, Ontario area, holds approximately 72,000 hectares of mineral rights in the Timmins-Cochrane areas of Northern Ontario known as Project 81. Project 81 hosts diversified drill-ready gold, nickel-cobalt and base metal exploration/VMS targets at various stages of exploration. More detailed information is available on the website at www.noblemineralexploration.com

For additional information please visit www.insidexploration.com/nob/ and be sure to follow Insidexploration through our various social media platforms.

Website https://insidexploration.com
Follow us on Twitter – @insidexplr – https://twitter.com/insidexplr
Join us on Facebookhttps://www.facebook.com/Insidexplr/
Youtube Channelhttps://www.youtube.com/channel/UCZC6W8B-k3uo39V042iKcng
Linkedinhttps://www.linkedin.com/in/insidexploration/

Disclaimer

The content of this video contain forward looking statements and are subject to change. We caution the viewer that this video is for informational purposes and should not be considered investing advice. Prior to making investment decisions, we encourage you consult a financial advisor and always do your own due diligence.






Author: MikeyMike426

Continue Reading

Energy & Critical Metals

With Fisker Up 33% in November, Is There Still Room for Growth?

Electric vehicle (EV) company Fisker (NYSE:FSR) has had a roller-coaster year. But now with 2021 reaching a close, FSR stock is on a roll. Specifically,…

Electric vehicle (EV) company Fisker (NYSE:FSR) has had a roller-coaster year. But now with 2021 reaching a close, FSR stock is on a roll. Specifically, the month of November was big for the company, highlighted by an Ocean EV unveiling at the LA Auto Show. FSR stock closed out October at $16.05. By the last day of November, it was worth $21.39. That’s a 33% gain — not bad for one month.

Source: T. Schneider / Shutterstock.com

Can the climb continue? After all, although we have finally seen a completed version of the vehicle, the Fisker Ocean is still a year from production in November 2022.

A lot could go wrong between now and then. It’s also possible that the excitement over the Ocean’s debut has boosted FSR stock to a point where further gains are unlikely, at least in the short term. As such, it’s time to take a closer look at this Portfolio Grader “C” rated stock and see if it deserves a spot in growth-oriented portfolios.

FSR Stock: The Ocean Is Real and Consumers Are Onboard

The start of 2020 was not long ago, but it was the beginning of a new era. Tesla (NASDAQ:TSLA) had begun ramping up to mass production levels. In 2019, the EV maker delivered 367,500 vehicles, up 50% from the prior year. Further, a total of 2.1 million EVs had been sold globally in 2019 as well. Meanwhile, CEO Henrik Fisker was preparing for CES 2020 with his prototype battery-powered Ocean SUV.

Details were lacking at CES and Fisker’s claims were taken with a big grain of salt. For instance, an article in The Verge noted that Fisker was known for “ambitious vision” but also had a reputation for his “trouble executing.”

Fast forward to November 2021.

Climate change reality is hitting home. Now, the White House is pushing to make half of all vehicles sold in the U.S. zero-emission certified by 2030. That means there will be a lot of EVs. One recent report put the value of the global EV market at over $2.49 trillion by 2027.

So, now publicly traded, Fisker is capitalizing on these catalysts by showing off its production-ready Ocean SUV. The battery-powered Fisker Ocean starts at $37,499 and can be had for just $379 per month on a flexible lease. Plus, it’s not just any old EV — the model is also one of the world’s most sustainable vehicles, thanks to features like a vegan leather interior and its extensive use of recycled materials.

The fact that FSR stock got a bump in November is really a no-brainer, then. But more importantly, Fisker is showing every sign that it’s executing.

The Bottom Line on FSR Stock

It’s easy to see the potential in Fisker. The market for EVs is huge and, after decades as a curiosity, battery-powered vehicles are going mainstream. 

Tesla has shown just how spectacular the growth potential is for EV makers. Now, the company has a first-mover advantage and is unlikely to lose market dominance anytime soon.

I’m not trying to suggest that Fisker is another Tesla. However, Tesla has shown it’s possible to do the unthinkable —  not only starting an EV company from scratch, but also going from zero production capacity to 238,000 EVs manufactured in a quarter.

Will FSR stock ever see the explosive growth that TSLA stock has seen? It’s 33% climb in November was a good start. There’s also no shortage of analysts who are bullish on Fisker. For instance, Bank of America analyst John Murphy recently upgraded his price target from $18 to $24.

The bottom line here? Fisker has potential and the risk involved with investing in this company is considerably less than it once was. With production a year out, there are ways its plans could still go sideways. However, with production-ready versions of the Ocean already on display — details published and pricing confirmed — FSR stock is looking more and more like a good candidate for long-term growth.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

More From InvestorPlace

The post With Fisker Up 33% in November, Is There Still Room for Growth? appeared first on InvestorPlace.

Continue Reading

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

Continue Reading

Trending