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Rivian (NASDAQ:RIVN) stock is on a downhill slide after UBS analysts dealt a double downgrade blow to the electric vehicle (EV) company’s shares.
UBS analyst Joseph Spak downgraded RIVN stock from “buy” to “sell,” defying the analysts’ consensus of a hold rating, based on 23 opinions.
The downgrade also led to a reduced price target, with the analyst revising their price forecast from $24 per share to merely $8 per share. This marks a potential 30.1% plunge from the previous closing price and falls below the analysts’ consensus of $22.45 per share.
Reasons Behind the Bearish Stance on RIVN Stock
According to the UBS analyst’s note to clients, there are concerns about Rivian’s competitive position in the evolving EV market.
“We had been optimistic on RIVN’s product and brand ultimately winning out. But a rapidly changing EV backdrop causes us to reassess our demand view and makes RIVN’s current strategy quite onerous on the ramp to profitability and cash flow.”
RIVN stock is presently down 9% following the UBS downgrade. Trading volume has spiked to about 26 million shares compared to the usual daily average of 36.4 million shares.
Stay tuned for the latest stock market updates, including insights on Carvana (NYSE:CVNA), ramifications of a potential Walmart (NYSE:WMT) stock split, and trends affecting Applied Optoelectronics (NASDAQ:AAOI).
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On the date of publication, William White had no positions in the securities mentioned. The opinions expressed here solely belong to the writer and align with InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2024/02/ubs-just-double-downgraded-rivian-rivn-stock/.
©2024 InvestorPlace Media, LLC
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