Truist Securities Downgrades Rivian Automotive Inc (RIVN) to Hold, 'Built for Rough Terrain, But Road Remains Rocky'

Truist Securities analyst Jordan Levy downgraded Rivian Automotive Inc (NASDAQ: RIVN) from Buy to Hold, PT $11.00 (from $26.00).

The analyst comments "Planned Shutdown Effect Worse Than Anticipated: With an expected multi-week shutdown for RIVN planned for 2Q to refit/upgrade the company’s Normal facility R1 production line, FY24 production guidance came in meaningfully below expectations at 57k vehicles vs our/Street estimates of 64k/80k, which would keep growth flat YoY (though we note Street ests contained a significant outlier w/median Street est. 66k). Mgmt spoke to the multi-quarter slowdown/ramp up effects of the shutdown on R1 production, along w/ a supplier issue that cropped up in 1Q and which is forecasted to delay the finalized production of several thousand vehicles by quarter end (mgmt expects the issue to be solved by April). While we had noted for several quarters that Street estimates needed to come down to properly account for the shutdown, we'd previously expected some level of growth out of RIVN in 2024 despite the shutdown. Further, while we remain believers in the long-term penetration of EVs, we expect that customers waiting on R2 coupled with persistently high interest rates and geopolitical uncertainties could act as headwinds to demand in the 2024/2025 timeframe ahead of RIVN's next vehicle launch."

For an analyst ratings summary and ratings history on Rivian Automotive Inc click here. For more ratings news on Rivian Automotive Inc click here.

Shares of Rivian Automotive Inc closed at $10.07 yesterday.

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