If we've learned anything from Rivian Automotive's reaction to earnings and stock, it's that the company's production ramp-up isn't happening fast enough for the market. Wall Street analysts have concerns, too, but they still love the stock very much. The Street Is Sticking To Its Buy Call
Come Rivian Rating. They are more positive than Tesla.
The Wall Street brokerages involved in Rivian's IPO are now starting to cover the stock. Analysts believe Rivian to be a long-term winner. Continue reading
, even if they are revisiting what the shares are worth.
Rivian (Ticker: RIVN) told
Rivian stock is falling. The EV maker came up small everywhere.
Rivian's results and guidance missed estimates, and the EV maker expects to deliver only 25,000 vehicles this year, compared to about 40,000 compared to Wall Street View. Continue reading
Broader losses from lower-than-expected sales for the fourth quarter of 2021. Sales and earnings don't matter for that period, although it doesn't matter all that much. Rivian has just started delivering the vehicles.
The outlook for 2022 is a big deal. Rivian told investors on Thursday evening that it plans to make about 25,000 vehicles this year. Wall Street was expecting closer to 40,000. Shares are down 8.6% in premarket trading following that disclosure. The S&P 500 and Dow Jones Industrial Average futures are up 1.3% and 1.1%, respectively.
Management attributed parts shortages to supply-chain problems and a slower than expected production ramp. Piper Sandler analyst Alexander Potter
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He is buying clarification and keeping his buy rating on the shares, noting that the reservations and backlog still look strong. Rivian has approximately 83,000 truck reservations and 100,000 delivery van orders from Amazon.com (AMZN).
Potter, however, lowered his price target from $148 per share to $130.
Wedbush analyst Dan Ives
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The same feels about the quarter: It wasn't good news, but they still like the stock. “The Rivian story since its IPO in late 2021 has been a bad episode out of the twilight zone for Street,” Ives wrote in a Friday report. Supply-chain problems, price hikes, price cuts, weak guidance are all factors that have stuck in the stock zone, Ives says.
"Is the story broken or fixable?" Ives asks, before answering that it is the latter. He still rates the stock buy, but lowers his price target from $130 per share to $60, compared to Potter.
The prevailing view on Wall Street is that Rivian will be fine. "We understand that [Rivian] needs to show progress on the production ramp and to rebuild investor confidence," RBC analyst Joseph Spak wrote in the Friday report. “This may take time and [the company] has a very ambitious plan… but we see a very favorable risk/reward at these levels for investors to be patient with.”
Spock's price target dropped from $116 per share to $100. Mizuho Analyst Vijay Rakesh
Tesla stock has been crushed. Wall Street is quietly getting more optimistic.
Mizuho began coverage of the electric-vehicle stock, setting a target of $775 for the price, up about $688 early Thursday. Continue reading
Lowered its target from $145 per share to $100. Both analysts still rated the stock buy.
Overall, Average Analyst Price Target
Do Wall Street stock price targets really matter? What investors need to know.
Wall Street price targets on stocks are, at best, indicative of market sentiment. But investors should instead focus on evaluating the business model and management teams. Continue reading
declined from $116 to $94 per share. This decline takes a roughly $20 billion cut from Rivian's valuation. But so far no one has downgraded the stock. About 70% of analysts buy shares above the 58% average for stocks in the S&P 500.
Coming into Friday trading, Rivian shares are badly beaten, down nearly 60% year over year, and down nearly 77% from a record high of nearly $180 per share.
Rivian has doubled. It's time to pump the brakes - a little.
Setting the Rivian stock on fire is an understatement. But stocks that go up fast usually come down fast. It's just a call to be careful. Continue reading
, Inflation, rising interest rates and the Russian-Ukraine war have eroded some investors' desire to hold highly valued high-growth stocks.