Mizuho cuts Rivian’s PT for the second time in 2 weeks but still sees a 107% upside potential

Written by Cláudio Afonso | info@claudio-afonso.com

On Thursday, Mizuho Securities analyst Vijay Rakesh cut Rivian’s price target by $5 to $95 a share while teiterating his Buy rating on the stock. The downgrade comes two weeks after the analyst lowers his Rivian price target from $145 to $100. The new price target represents an upside potential of 107% based on Wednesday closing price at $45.87 per share. Rivian shares have an average rating of outperform and price targets ranging from $40 to $147, according to analysts polled by Capital IQ.

Photo Credit: Rivian Automotive

Recently, the company reported Q4 and Full Year 2021 Earnings missing Wall Street’s expectations. The company lowered its production guidance for 2022 and expects now to deliver 25,000 vehicles (down from 40,000). After being down 6.35% during the trading session, the stock dropped nearly 13% After-Hours to $35.93 per share.

Recently, Rivian announced the hiring of Frank Klein as Chief Operations Officer, effective June 1st, 2022. Frank most recently held the position of President at Austria-based automotive contract manufacturer Magna Steyr, a subsidiary of Canadian-based Magna International. He will be based in Normal, IL, and will report directly to Rivian’s Chief Executive Officer, RJ Scaringe. Klein succeeds Rod Copes, who retired from the position last year.

As of March 8th, Rivian has 83,000 R1 net preorders in the U.S. and Canada and 100,000 EDV units reserved from Amazon and counts 11,500+ employees. The company has been facing a number of challenges, from production ramp-up to orders cancelled after increasing its prices by 17% and 20%. Rivian announced that has raised the price of its R1T pickup by 17% and R1S SUV by about 20%. Increases in the cost of raw materials, inflationary pressure and the already known chip shortage issue are the reasons for this price increase.

Written by Cláudio Afonso | info@claudio-afonso.com