Rivian 'Best Positioned EV OEM': Analyst Praises Long-Term Outlook, R2 Launch, With Short-Term Caution
Portfolio Pulse from Chris Katje
Needham analyst Chris Pierce maintains a Buy rating on Rivian Automotive (NASDAQ:RIVN) but lowers the price target from $18 to $13, citing concerns over electric vehicle demand but noting better than feared demand for the R1S. Pierce updates delivery estimates for Rivian, with figures for 2024 and 2025 below consensus but 2026 and 2027 above. The R2 vehicle launch is seen as a long-term positive, though not a near-term catalyst. Rivian's strategy includes reducing planned capex by delaying the build-out of its Georgia plant. The analyst's bull case for Rivian is a $24 price target, with a bear case at $7.50. Rivian shares are up 2% to $8.93, with a 52-week range of $8.26 to $28.06, and a year-to-date decrease of 63% in 2024.
April 18, 2024 | 4:49 pm
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Needham analyst maintains Buy rating on Rivian but lowers price target from $18 to $13, optimistic about long-term growth with R2 launch despite short-term EV demand concerns.
The lowered price target reflects short-term demand concerns for EVs, impacting investor sentiment. However, the Buy rating and long-term positive outlook, especially with the R2 launch, could balance views on Rivian's growth potential and financial health. The current share price movement and year-to-date performance indicate market reactions to broader EV sector trends and specific company updates.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100