Rivian Stock: Why Is RIVN Down Today?

Rivian (NASDAQ:RIVN) stock is slipping on Friday following a new note from an analyst that investors aren’t reacting well to.

The back of a silver Rivian (RIVN Stock) pick-up truck.

Source: Miro Vrlik Photography / Shutterstock.com

That note comes from Mizuho analyst Vijay Rakesh. The big news here is that the analyst lowered their price target for RIVN stock from $110 per share to $95 per share. For the record, the current consensus price prediction for RIVN shares is $93.21 each.

While the Mizuho analyst did drop their price target for RIVN stock, they still continue to hold a “buy” rating for the shares. This has them matching the analyst consensus rating, which is made up of 12 “buy” and four “hold” ratings.

So what’s behind the lower price target for RIVN stock. Rakesh believes that supply chain issues are going to be a problem for the company. That’s not too surprising as many tech companies are currently dealing with chip shortages.

In the case of Rivian, this could affect its deliveries. The analyst updated his delivery estimates from 6,000 and 14,000 to 5,6000 and 17,400. He is expecting lower deliveries in the first half of the year on supply constraints, but larger deliveries in the second half on improving conditions, reports TheFly.com.

Unfortunately for RIVN stock, investors aren’t seeing this note as a positive for the company. As a result, shares of RIVN are slipping 4.8% as of Friday afternoon. That has the stock down 54.9% since the start of the year.

Investors on the lookout for more stock market news are in the right place!

InvestorPlace houses all of the latest stock market coverage traders need to know about on Friday. A few examples include what has Clever Leaves (NASDAQ:CLVR) stock rising, expert opinions on Roblox (NYSE:RBLX) stock, as well as the news affecting liquefied natural gas stocks today. You can find out all about these matters at the following links!

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On the date of publication, William White did not have (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.

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