Rivian Only EV Maker That Makes The Cut For Bullish Recommendation Says Analyst: 'Underappreciated Winner' In EV Transition
Portfolio Pulse from Shanthi Rexaline
Needham analyst Chris Pierce reiterated a Buy rating and $25 price target for Rivian (RIVN), keeping it on the firm's 'Conviction List'. He downgraded Lucid (LCID) from Buy to Hold, citing uninspiring Q3 results and tempered expectations for technology licensing to Aston Martin. Pierce also holds Hold ratings on Tesla (TSLA) and Fisker (FSR), expressing concerns over Tesla's margin profile and skepticism about its growth levers. Rivian is seen as an 'underappreciated winner' in the EV transition, being supply-constrained with pricing power and potential for market expansion.
November 27, 2023 | 12:51 pm
News sentiment analysis
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NEGATIVE IMPACT
Lucid was downgraded from Buy to Hold by Needham due to uninspiring Q3 results and lowered expectations for its technology licensing deal with Aston Martin.
The downgrade of Lucid by Needham, based on Q3 performance and reduced optimism for its technology licensing, is likely to have a negative impact on investor sentiment and the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Fisker also has a Hold rating from Needham, with the analyst mentioning demand constraints for the company.
Fisker's mention as demand-constrained with a Hold rating suggests a neutral outlook, which may not significantly impact the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Tesla holds a Hold rating from Needham with concerns over its margin profile and skepticism about growth levers like fully-self driving software, Tesla Bot, and AI.
While Tesla's stock price edged up slightly, the Hold rating and concerns expressed by Needham could create uncertainty among investors, potentially leading to a neutral short-term impact on the stock.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Rivian is maintained as a Buy by Needham with a $25 price target and is the only EV maker on their 'Conviction List', seen as a strong contender in the EV market with supply constraints and pricing power.
Rivian's positive outlook from Needham, being the only Buy-rated EV stock and part of the 'Conviction List', suggests a bullish sentiment that could positively influence its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90