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Most analysts still rate Rivian shares Buy, despite the stock’s recent decline.
Courtesy Rivian
Analysts are adjusting their price targets for
Rivian Automotive
stock to reflect its extended losses over the past few months.
On Thursday, Mizuho analyst Vijay Rakesh cut his
Rivian
(ticker: RIVN) price target by $5 to $95 a share, but maintained his Buy rating on Rivian stock.
The stock was slipping again Thursday, down 1.2% to $45.34 in morning trading. The S&P 500 and
Dow Jones Industrial Average
are up about 0.3% and 0.4%, respectively.
Rakesh’s action mirrors the rest of Wall Street. Analysts like the stock, but have been cutting target prices. Almost 70% of analysts covering the company rate shares Buy. The average Buy-rating ratio for stocks in the
S&P 500
is about 58%.
However, the average analyst price target is now about $82 a share, down about 40% from an average of about $135 shortly after the Rivian IPO.
In this case, Wall Street seems to be following investors as the stock continues its rocky road downward. Rivian shares have slid about 74% from their all-time high of more than $179. Coming into Thursday trading, shares were down about 56% year to date.
A slow production ramp is partly to blame for stock weakness—and for Rakesh’s lowered price target. Rivian expects to ship about 25,000 vehicles in 2022. At the start of the year, analysts were hoping that number would be closer to 40,000.
Rising interest rates and inflation also haven’t helped Rivian stock, or shares of…
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