Written by Cláudio Afonso | LinkedIn | X
Piper Sandler slashed its price target on the EV maker Rivian as it “struggles to identify upside catalysts” for 2025. Investors are largely focused on the U.S. manufacturer’s R2 model, set to launch in 2026.
The analyst Alexander Potter downgraded Rivian’s rating from Overweight to Neutral despite noting that the stock is currently the firm’s “favorite Neutral”.
“We’re downgrading RIVN, but for what it’s worth, this is now our ‘favorite Neutral’,” the analyst wrote before noting that the firm “likes Rivian’s strategy, particularly self-reliance in electronics and software.”
Piper Sandler sees the company’s joint venture with the German automaker Volkswagen as a help to “de-risk the balance sheet while validating the strategy.” Potter noted also that recent Cost of Goods Sold (COGS) per unit trends are “encouraging ($30k+ y/y reduction in 4Q24 vs. 4Q23).”
Potter slashed the firm’s price target to $13.00 from $19.00 as it “struggles to identify upside catalysts in 2025” despite “a generally favorable”
“In 2026, investors can look forward to the R2 launch, and (maybe) JV customer wins…but between now and then, Rivian has minimal growth and lots of heavy lifting,” Potter wrote before commenting on the political scenario.
“We’re also wary of policy risk: RIVN is exposed to a potential triple-whammy in 2025. Our DCF-based price target is now $13, down from $19, due to dilution and WACC/ VW’s equity boosted,” the analyst concluded.
Earlier this week, Benchmark analyst Mickey Legg reaffirmed a bullish price target on the EV maker as it expects “a stronger delivery ramp” in the second half of the year.
In a new research note, Legg reaffirmed a Buy rating on the stock with an $18.00 price target, suggesting a 63% upside from the previous closing price.
As of the time of writing, Rivian shares are trading 5% higher at $11.45.
