Luxury EV name Lucid slashed on cooling production guidance: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Lucid, Humana, NXP Semiconductors, and Masimo}}.

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Lucid cut to Neutral on lower expected revenues

Cantor Fitzgerald downgraded Lucid Group (NASDAQ:LCID) to Neutral from Buy and cut its price target to $6.00 from $10.00 after the company reported its Q3 results and cut its full-year production forecast.

The analysts noted that the luxury electric car maker lowered its full-year 2023 production forecast to a range of 8,000-8,500 vehicles, a decrease from the earlier estimate of more than 10,000 vehicles - which itself comes after previous estimate cut in May from an initial range of 10,000-14,000 vehicles.

Cantor Fitzgerald says its downgrade reflects concerns over reduced revenue projections, persistent large negative gross margins, the revision in production guidance, and a slowdown in industry demand.

Shares slumped about 8% to $3.95 in Wednesday's session.

NXP Semiconductors hit with two downgrades

NXP Semiconductors (NASDAQ:NXPI) shares fell more than 2% pre-market today after two Wall Street firms cut their ratings on the company following its reported Q3 results on Monday.

Citi downgraded the stock to Sell from Neutral, and cut its price target to $150.00 from $216.00, on the belief that the company is starting to feel the impact of market corrections and with expectations for more pushouts and cancellations soon, similar to peers.

The analysts projected a mid to high single-digit decline for the first quarter of the next year - and projects 2024 EPS will come out roughly 40% below consensus - even as they also highlighted that NXP posted good quarterly results due to upside from the industrial and mobile end markets.

CFRA also downgraded NXP, trimming its rating to Buy from Strong Buy.

Humana slashed at BofA

BofA Securities downgraded Humana (NYSE:HUM) to Underperform from Neutral and cut its price target to $6.50 from $9.50, as reported in real-time on InvestingPro.

Last week, the company reported better-than-expected Q3 results but flagged that higher medical costs could hurt its 2024 profit growth.

Masimo downgraded to Market Perform following guidance cut

Raymond James downgraded Masimo (NASDAQ:MASI) to Market Perform from Outperform after the company posted its Q3 results and slashed its guidance, which led to more than an 11% stock price drop pre-market today.

“The lack of visibility into growth, and the sizable estimate reduction are thesis-changing, combined with a valuation that is less compelling,” wrote the analysts.

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