Written by Cláudio Afonso | LinkedIn | X
Shares of Rivian fell over 3% in pre-market trading on Monday after Bank of America (BofA) cut its price target on the electric vehicle maker by 23% and downgraded the stock to Underperform.
BofA analyst John Murphy lowered his price target to $10 from $13, citing concerns over Rivian’s growth trajectory and profitability. The revised target implies a 23% downside from Friday’s closing price of $12.97.
“We downgrade RIVN from Neutral to Underperform,” the analyst wrote despite noting that the company “remains one of the most viable among the startup EV OEMs and is making progress towards sustainably positive gross margins.”
The downgrade follows Rivian’s fourth-quarter earnings report last Thursday, which saw mixed reactions from Wall Street.
BofA sees the annual guidance as “softer than we had expected” while the VW partnership “is complicating earnings forecasts for at least the next four years.” Murphy also pointed out that the competition “is increasing with new SUV/CUVs projected to enter the market in 2026/2027.”
The California-based automaker reported its first quarterly gross profit of $170 million, compared to a loss of $606 million a year earlier. Net loss narrowed to $743 million from $1.52 billion in the same period last year. However, Rivian’s 2025 vehicle delivery guidance of 51,000 units fell short of expectations.
Wall Street Reactions
Goldman Sachs maintained a “Neutral” rating with a $14 price target, noting Rivian’s cost reductions while expecting flat regulatory credit revenue of $300 million in 2025. Cantor Fitzgerald downgraded RBenchmark reaffirmed a “Buy” rating with an $18 price target, highlighting operational efficiencies. Needham raised its price target to $17 from $14, maintaining a “Buy” rating.
Mizuho increased its price target to $13 from $11, keeping a “Neutral” stance, citing strong fourth-quarter results and a 10% gross margin supported by regulatory credits.
Wells Fargo lifted its price target to $14 from $11, maintaining an “Equal Weight” rating.ivian to “Neutral” from “Overweight,” while raising the price target to $15 from $13, citing the lower 2025 delivery outlook.
Rivian shares have lost 21% over the last twelve months.
