Rivian Automotive (NASDAQ: RIVN) stock rebounded following last week’s downturn post-release of its quarterly report.
Rivian (RIVN) stock has plummeted by 38% in the week ended February 23, hitting a record low after the company issued lower-than-expected deliveries guidance for 2024.
Sell-side analysts revised their outlook for Rivian, adjusting their price targets downward in response to the disappointing guidance.
Major financial institutions, including JPMorgan, UBS, and Truist Securities, downgraded Rivian’s stock. JPMorgan shifted its rating from Neutral to Underweight and cut its price target from $20 to $11. Similarly, UBS downgraded Rivian from Buy to Sell, reducing its price target from $24 to $28. Truist followed suit, lowering its rating from Buy to Hold and revising its price target from $26 to $11.
However, a potential silver lining emerged on Monday, as the stock saw a rebound, suggesting that the sell-off might have been overdone. This came after Tesla investor Gary Black voiced optimism regarding Rivian’s future, foreseeing it as a credible competitor to Tesla by 2030. Black anticipated Rivian achieving positive gross margins by the fourth quarter of 2024, with a substantial reduction in cash outflow. He also speculated about Amazon, a major Rivian customer, potentially exploring acquisition possibilities.
Meanwhile, Rivian prepares to unveil its second-generation R2 affordable electric vehicle on March 7.
Analysts suggest that for Rivian’s stock to reverse its downward trend, it must fill the gap created by its recent decline and surpass a critical resistance level around the $15 mark. In addition, the stock is currently considered oversold based on its relative strength index, hinting at a potential rebound in the future.
Rivian (NASDAQ: RIVN) Stock Movement
RIVN stock surged 6.26% to close at $10.70 on Monday. The traders had exchanged hands with 71,455,201 (71.45 million) shares compared to the average daily trading volume of 37.84 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
