What's Going On With Rivian Automotive Stock?
Portfolio Pulse from Erica Kollmann
Rivian Automotive, Inc. (NASDAQ:RIVN) stock is trading lower, down over 17% in the past five days. Deutsche Bank downgraded Rivian from Buy to Hold and lowered its price target from $29 to $19, citing expected volume guidance of only 65,000 units, factory shutdowns, and a slow ramp-up leading to potential heavy losses through Q3 2024. Rivian also announced the availability of its R1S electric SUV for leasing. The stock is trading below its 50-day moving average, and a high percentage of shares are being sold short, contributing to volatility. Analysts rate Rivian as Neutral, with Deutsche Bank's Emmanuel Rosner being the most bearish.
January 18, 2024 | 6:34 pm
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NEGATIVE IMPACT
Rivian's stock is facing downward pressure after Deutsche Bank downgraded the stock from Buy to Hold and reduced the price target. The announcement of the R1S leasing did not offset the negative sentiment from the downgrade and expected production challenges.
The downgrade by a major bank like Deutsche Bank, combined with the lowered price target, is a significant negative signal to the market, likely leading to a bearish short-term sentiment. The high short interest and trading below the 50-day moving average further indicate bearish momentum. While the leasing announcement is positive, it is overshadowed by the concerns raised by Deutsche Bank.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100