Lucid Group earnings earn skeptical review from Morgan Stanley
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Lucid Group (NASDAQ:LCID
+0.6%) is not garnering enthusiasm on Wall Street despite a first quarter earnings beat.
Shares of the California-based electric vehicle manufacturer traded in a volatile manner on Friday despite a beat on top and bottom-line estimates in an earnings release on Thursday evening, abetted by strong reservation momentum. The company also maintained its production targets of 12,000-14,000 vehicles while pushing prices higher to combat inflationary impacts. 
However, according to Morgan Stanley analyst Adam Jonas, the risk/reward dynamics make the stock difficult to recommend on Friday.
âWe applaud the company for getting to this point of bringing this compelling model to market and ramping this far,â he said, in acknowledgment of positive trends in the quarter. âWeâre watching LCID carefully as we believe it has some of the key ingredients to be a part of the exciting on-shore innovation and US renewable energy and transportation future that we needâ¦ but remain on the sidelines for a more attractive entry point.â
Indeed, the stock touts a lofty price to sales ratio, despite an over 60% drop in the past six months.
Jonas maintained an âUnderweightâ rating on shares alongside a $12 price target. His target suggests a significant haircut for current shareholders as shares touched $19 shortly after Friday's opening bell.
Read more on the ratings across Wall Street for the American EV manufacturer.