UBS Upgrades Rivian Automotive Inc (RIVN) to Neutral, 'More balanced at current levels'

UBS analyst Joseph Spak upgraded Rivian Automotive Inc (NASDAQ: RIVN) from Sell to Neutral with a price target of $9.00.

The analyst comments "We believe the near-term risk/reward is more balanced at current levels (upside/ downside case skew is 1.6:1). The stock price now better considers some of our mid- term concerns. For instance, we believe the stock is now pricing in ~$4.5bn 2025 sales vs. UBSe of ~$5.1bn (even though consensus still stands at $7.5bn). With climbing short interest (now ~18.7% of float), positioning is also a higher risk, especially if a positive data point/catalyst emerges. That said, we'd expect the stock to remain volatile. Near- term upside catalysts could be if there is a positive update on R2 orders which would reinforce what Rivian can become, even if that growth is more likely in 2026/27. Near- term downside catalysts could be R1 price cuts and/or softer R1 demand (even though we believe this is better considered at current levels, we see headline risk) as well as higher interest rate concerns. Please see our 1Q24 preview for more details on what we are looking for on 1Q24 earnings."

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 $9.13 yesterday.

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Ladenburg Thalmann Upgrades ONE Gas Inc. (OGS) to Buy
• Bernstein SocGen Group Reiterates Outperform Rating on JD.com, Inc (JD), 'very cheaply valued'