'EV Winter' Is Starting To Take A Toll On Rivian: Analyst Says 2024 Targets Are In Jeopardy
Portfolio Pulse from Adam Eckert
Barclays analyst Dan Levy downgraded Rivian Automotive Inc (NASDAQ:RIVN) from Overweight to Equal-Weight and lowered the price target from $25 to $16 due to broader EV market trends and specific challenges Rivian faces, including supply constraints and weak demand for its products. Despite Rivian's potential as a long-term winner in the EV space, Levy believes these issues will likely cause Rivian to miss its 2024 target of reaching gross margin profitability.
February 12, 2024 | 6:48 pm
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Rivian downgraded by Barclays from Overweight to Equal-Weight with a price target cut from $25 to $16 due to broader EV market challenges and Rivian's specific issues like supply constraints and weak demand.
The downgrade and price target reduction by Barclays reflect concerns over Rivian's short-term challenges, including supply constraints and weak demand for its products. These issues are significant as they are likely to impact Rivian's ability to meet its 2024 profitability targets, potentially affecting investor confidence and the stock price negatively in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100