Barclays analyst Brian Johnson lowered today Rivian’s price target to $47 from $115 maintaining an Equal Weight rating on the shares heading into Earnings Report. On the note released, the analyst says that believes the planned price increase was baked into investor expectations and the rollback of price increase leads him to cut selling price and margin assumptions through 2023. The electric truck maker’s shares shares hit earlier today a new All-Time-Low at $39.86.
Last week, Baird analyst George Gianarikas lowered Rivian’s price target to $100 from $150, 124.9% higher of the current levels. During the last weeks, the stock has been under pressure amid Market pullback on the Ukraine war but also due to the recent decision of increasing prices of its models by 17% and 20% that resulted in many orders cancelled.
Last week, Wells Fargo analyst Colin Langan lowered Rivian’s price target from $110 to $70 while maintaining an Equal Weight rating ahead of the March 10 Earnings report. Langan is bullish on the products and brand strategy, although he sees near-term headwinds including risk to Q1 delivery expectations, the negative impact from rising interest rates, increased BEV competition, and potential selling post the lock-up expiration in mid-May.
“We are bullish on the products and brand strategy; however, we see near-term headwinds.” —wrote the analyst. Rivian shares closed 8.36% lower on Tuesday session and are currently down 35% Year-to-date.
Rivian announced last week that has raised the price of its R1T pickup by 17% and R1S SUV by about 20%. The company didn’t unveiled how many orders were cancelled, however many reservation holders immediately complained about the decision. On Thursday, the company sent an e-mail to all reservation holders reversing the decision saying that the “original configured price will be honored” .
On February 24th, Rivian‘s Chief Executive Officer R.J. Scaringe said that the company is “making progress” in the increase of production for electric vehicles at its Normal, Illinois, assembly plant and is aiming to take 10% share in the EV market by 2030. The global semiconductor chip shortage is seen by Scaringe as the “most painful” constraint in the push to build production.