Rivian (NASDAQ:RIVN) debuted on the public markets last year, rising to as high as $179 from its initial public offering (IPO) price of $78. However, 2022 hasn’t been as friendly to RIVN stock so far. Shares of the electric vehicle (EV) maker are down more than 25% year-to-date, a far cry from its all-time high. Today, shares of RIVN stock are trading near $74, marking an all-time low. The new record has investors seeking out Rivian stock price predictions.
Why Is RIVN Stock Down Today?
With the S&P 500 and Nasdaq 100 both down more than 1.5% today, Rivian is feeling some of the pain from the indices. However, the Federal Reserve’s triple threat of raised interest rates, tapering of asset purchases and a reduced balance sheet may ultimately be to blame for Rivian’s recent weakness. Tapering asset purchases reduces liquidity in the market, which signals that the Fed may increase interest rates soon.
When interest rates go up, companies are less incentivized to borrow at higher rates, which may affect future company growth. While the reduction of the U.S. balance sheet has not begun yet, investors are getting nervous and selling out of long-duration growth names. Rivian certainly fits that bill. The $66 billion company reported a scant sales figure of $1 million in Q3, along with a loss of $1.23 billion. Additionally, Rivian stated that it expects its 2021 production target of 1,200 vehicles to fall “a few hundred vehicles short.”
With Rivian hitting an all-time low, investors are curious how the rest of 2022 may fare. Let’s dive into some Rivian price predictions from Wall Street’s best.
Rivian Stock Price Predictions: What’s Next for RIVN?
- RBC Capital has a price target of $165. The firm believes that Rivian will be able to achieve an impressive 50% compounded annual growth rate (CAGR) through 2030. Furthermore, the firm notes that a “clean-sheet approach and strong tech will allow RIVN to eventually use the vehicle as a platform for higher-margin software & services.”
- Mizuho has a price target of $145. Analyst Vijah Rakesh stated that the departure of Rivian COO Rod Copes should not worry investors. This is because it “had been planned for quite some time.” Additionally, Rakesh said Rivian is in a great position to take advantage of the SUV and trucks industry, which makes up ~70% of U.S. vehicle sales “with premium margins.” Finally, Rakesh believes Rivian is well-positioned to expand globally and scale its production.
- Barclays has a price target of $120. Analyst Brian Johnson believes Rivian can differentiate itself in the electric vehicle (EV) and internal combustion engine (ICE) industries, similar to how “Jeep is able to command a premium in the ICE market based on its adventure attributes.” In addition, the analyst believes that Rivian’s adventurous aspect will lead to subscription and reccurring revenue opportunities.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
