Why Lucid Shares Are Trading Higher Today

Lucid Group Inc LCID is trading higher Wednesday after B of A Securities initiated coverage on the stock with a Buy rating and announced a $30 price target.

The analyst firm said it views Lucid "as one of the most legitimate start-up EV automakers."

B of A Securities said Lucid has some key competitive advantages including its management team's industry experience, its innovative technology, an attractive product, intangible value in the Lucid brand and a greenfield approach to manufacturing. 

The stock traded lower yesterday after Morgan Stanley analyst Adam Jonas initiated coverage on Lucid with an Underweight rating and announced a price target of $12.

The Morgan Stanley analyst pointed to a number of key innovations at Lucid, however he expressed concerns about market size in the premium EV space and risks associated with the current valuation.

Lucid is a technology and automotive company developing the next generation of electric vehicle technologies.

LCID Price Action: Lucid was up 3.8% at $19.66 at time of publication.

Photo: courtesy of Lucid.