Needham analysts downgrade EV maker Lucid (LCID) over weak demand for the brand's electric vehicles. Roku, Inc. (ROKU) shares close over 8% higher on Monday after Cannonball Research upgraded the stock to "Buy" on its 2024 outlook.
Yahoo Finance takes a look at these stocks after Monday's closing bell.
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JULIE HYMAN: We are also watching shares of EV maker Lucid closing lower today after Needham downgraded the stock to hold from buy. Needham analyst, Chris Pearce, cutting his rating on weak demand for the company's vehicles. Now, this was part of a bigger look at the EV landscape by Chris Pearce where he looked, not just at Lucid, he looked at Rivian-- which is his favorite in the sector, by the way. He looked at Fisker-- a stock that's also down sharply today, and he looked at Tesla.
And, really, Lucid is one of the ones that is suffering here because of the downgrade. Specifically, he lowered his unit estimates after the company came out with its numbers.
JOSH LIPTON: Yeah. The analysts saying he doesn't have enough faith in near-term demand to drive unit volumes. By the way, this name is now down about 40% this year, and there are zero buys left on this stock.
JULIE HYMAN: Yeah. He talks about that there is some brand enthusiasm driving demand-- not just for Lucid, but also for Fisker and Rivian, but that these companies are demand constrained to varying degrees. That there is some demand there, but then there's a limit to the demand, for example. So, that's kind of an interesting perspective on it. Although, he says that they like the tech.
JOSH LIPTON: They like the tech. All right.
JULIE HYMAN: Not everybody does, I guess.
JOSH LIPTON: Nope. And finally, here shares of TV platform Roku closing higher by about nearly 9% there. That's after Cannonball research upgrading that stock from neutral to buy. So the money quote here, I think, was they say they now believe that room for upside to 2024 consensus forecasts. That's enough they think to allow for more meaningful upward estimate revisions that they've seen in recent quarters, they say.
Connected TV advertising, by the way, just more broadly, connected TV advertising spending is holding up better than feared. Big jump in their price target, Julie, they go from 88 to 116.
JULIE HYMAN: The stock's already up 150% or something year-to-date. So, it has already done very well this year. If you look again over the longer term here, the stock is up about 240%. So, you've really seen a comeback already in Roku. You always wonder when you see that-- and that's the two year chart, I guess. Everything depends on the time horizon. You worry about the timing of a call like this after the stock has already gone up 150%, but I guess if you're bullish, you're bullish, and you still keep going.
JOSH LIPTON: And remember earlier this month, they reported, they beat, investors piled in, but these guys obviously see more room for upside there.
JULIE HYMAN: Yeah. Looks that way.