By Investors in Rivian Automotive are facing challenges after the electric-vehicle maker’s fourth-quarter earnings report fell short of expectations. Despite receiving another downgrade over the weekend, the stock showed signs of improvement in early trading on Monday.
Analyst Downgrade and Outlook
Trusit analyst Jordan Levy downgraded Rivian stock to Hold from Buy, with a reduced price target of $11 from $26. Highlighting the company’s focus on manufacturing trucks and SUVs for rugged terrains, Levy expressed concerns about the bumpy road ahead for the stock. He acknowledged Rivian’s strong execution and unique brand positioning but cited imminent capital needs and a flat volume outlook as factors limiting growth potential.
Levy suggested that investor sentiment may not improve until Rivian introduces its second-generation, more affordable EV platform (R2) in 2026. This shift is expected to drive future growth and enhance market perception.
Market Response and Analyst Sentiment
Despite the downgrade, Rivian shares saw a 2.1% increase in premarket trading on Monday, reaching $10.29. This positive movement follows a significant drop of almost 26% on Thursday and an additional 12% decline on Friday post-earnings release. J.P. Morgan analyst Ryan Brinkman’s Sell rating further fueled the downward trend.
Year-to-date, Rivian stock has plummeted by 57%, with a 39% decline over the past three months. Analyst sentiment has shifted, with only 54% now holding Buy ratings compared to nearly 70% three months ago. The average price target for Rivian stock has also decreased to approximately $18 from $25 before the earnings report.
Despite these challenges, Rivian continues to navigate a complex market landscape while striving for long-term growth and sustainability. Stay updated on industry developments and company performance for insights into future investment opportunities.
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