That downgrade sees the Barclays analyst dropping RIVN stock from an “outperform” rating to an “equal weight” rating. That’s a more bearish stance compared to the analysts’ consensus rating of moderdate buy based on 22 opinions.
In addition to that downgrade, Levy dropped the firm’s price target for RIVN stock from $16 per share to $9 per share. That’s a potential 46% downside compared to the stock’s prior closing price. It’s also below the analysts’ consensus price prediction of $26.81 per share.
What’s Behind the RIVN Stock Downgrade?
Here’s what the Barclay’s analyst had to say about Rivian in a note to clients obtained by Seeking Alpha.
“The consequences of weak demand are significant. Not only does it mean that the volume outlook is challenged, but it also presents potential pricing risk – with both points reinforcing RIVN is likely to miss its 2024 target of reaching gross margin profitability. Moreover, with ongoing capital needs given prepartion for the high volume R2 in 2026, we see future pressure.”
RIVN stock is down 1.9% as of Monday morning. That comes as some 9 million shares change hands. This is still below its daily average trading volume of about 33 million shares.
Investors looking for all of the latest stock market stories in are in luck!
We have all of the hottest stock market news that traders need to know about on Monday! A few examples include a major deal for Diamondback Energy (NASDAQ:FANG), layoffs at Cisco (NASDAQ:CSCO) and what’s happening with shares of WeTrade (NASDAQ:WETG) stock today. You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.