Vijay Rakesh, Managing Dir. & Sr. Analyst of Semiconductors and Automotive Technologies at Mizuho, lowered on Friday Rivian’s price target to $100 from $145 — representing an upside of 165% based on the current share price. The analyst maintained a Buy rating on the shares and continues to see Rivian as a leaderand pure-play in the EV market addressing the premium SUV/truck segment.
The company reported a “soft” December quarter as it sees early-stage ramp challenges with 2,425 vehicles produced to date, Rakesh tells investors in a research note.
Rivian cut 2022 production guidance to 25,000 units from 50,000, the analyst added. While Rivian offers a “robust, compelling” portfolio product and business model, key will be ramping production and avoiding costly delays, writes Rakesh.
As of 07:27 EST, Rivian shares are trading 9.00% lower at $37.70 during Pre-Market after closing 6.35% lower on Thursday’s session.
The American electric-vehicle maker Rivian reported on Thursday the Q4 and Full Year 2021 Earnings Report 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 — a new All Time Low for the stock.
- Adjusted loss per share: $2.43 vs. $1.97 a share expected
- Revenue: $54 million vs. $60 million expected
“In the immediate term, we are not immune to the supply chain issues that have challenged the entire industry. Those issues, which we believe will continue through at least 2022, have added a layer of complexity to our production ramp-up” — Rivian stated. Read the full statement here.