UBS Downgrades Rivian Automotive (RIVN) to Sell, Sets Price Target at $15
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Rating Downgrade: UBS has downgraded Rivian Automotive's rating from Neutral to Sell, primarily due to an unfavorable risk-reward profile stemming from a lack of near-term autonomous vehicle catalysts.
- Stock Fluctuation: Since Rivian's Autonomy and AI Day event in December, the stock has rallied over 15%, but analysts believe that most AI-related positive news has already been priced in.
- Sales Forecast: Analysts project Rivian's sales for 2026 and 2027 to be 16% and 19% below consensus estimates, respectively, while current stock prices reflect a 25% premium over UBS's 2027 sales forecast.
- Competitive Pressure: The AV technologies showcased by Nvidia and Ford at CES could hinder Rivian's plans to sell or license its technology to major automakers in the future.
Analyst Views on RIVN
Wall Street analysts forecast RIVN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RIVN is 13.98 USD with a low forecast of 7.55 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
5 Buy
8 Hold
5 Sell
Hold
Current: 18.850
Low
7.55
Averages
13.98
High
25.00
Current: 18.850
Low
7.55
Averages
13.98
High
25.00
About RIVN
Rivian Automotive, Inc. is an automotive manufacturer, which is engaged in developing and building category-defining electric vehicles (EVs) and accessories, as well as software and services that address the entire lifecycle of the vehicle. The Company’s R1 platform consists of two vehicles: the R1T, a two-row five-passenger pickup truck, and the R1S, a three-row seven-passenger sport utility vehicle (SUV). In the commercial market, the Company offers a Rivian Commercial Vehicle (RCV) platform. The vehicle on this platform is the Electric Delivery Van (EDV), designed and engineered by Rivian in collaboration with Amazon. The Company also offers FleetOS, its proprietary, end-to-end centralized fleet management subscription platform. It also offers a variety of services, including vehicle repair and maintenance, financing, insurance, software subscriptions and FleetOS solutions. Its value-added services include vehicle electrical architecture and software development services, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
