JPMorgan Just Cut Its Price Target on Rivian (RIVN) Stock


  • JPMorgan has lowered its price target on Rivian (RIVN) stock.
  • It isn’t the first Wall Street firm to issue a bearish take recently.
  • But RIVN stock is rising today and looks primed to keep growing.
RIVN stock - JPMorgan Just Cut Its Price Target on Rivian (RIVN) Stock

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Last week’s winning streak seems to be continuing for Rivian Automotive (NASDAQ:RIVN), even in the face of shifting Wall Street sentiment. Last week ended with a downgrade from Barclays, and now JPMorgan is following suit. The financial sector giant has reduced its RIVN stock price target from $11 to $10 per share. While this is not a massive downgrade and still leaves the investment bank with a bullish price target, trading proved volatile for Rivian as markets opened today. But the electric vehicle (EV) producer has managed to rally and is currently in the green, demonstrating an impressive resilience.

Does this mean that investors shouldn’t be concerned with Wall Street firms’ trend of downgrading RIVN stock? Today’s performance is reassuring, but given the many problems facing the company, these analyst takes are certainly worth considering. Let’s take a closer look at why experts feel this way about Rivian.

What’s Happening With RIVN Stock

It’s true that RIVN stock isn’t up much today. As of this writing, it has recently squeaked into the green by 0.87%. On most days, that wouldn’t warrant a second glance. But in the face of the recent downgrade from a major Wall Street firm, the fact that it is rising is noteworthy, especially after last week’s downgrades from Barclays and Needham.

This suggests that Rivian isn’t done yet. But it still isn’t hard to see why analysts are souring on the former EV winner. RIVN stock has shed roughly 50% of its value over the past six months. The company recently announced its second round of layoffs this year. And as InvestorPlace‘s Eddie Pan reports, the trend of rising hybrid EV sales isn’t helping, as Rivian faces an uncertain economic landscape.

Despite Rivian’s difficult start to 2024, it’s important to take recent events in context. Rivian’s recent round of layoffs impacted only 1% of its staff, meaning it barely matters. And as noted, JPMorgan may have lowered its price target for RIVN stock but it still maintains a bullish take, as the company currently trades at less than $9 per share. Things may not actually be as grim as the headlines might suggest.

The Road Ahead

Even with Wall Street sentiment shifting towards the negative, RIVN stock could represent a key opportunity to buy a winning stock on the dip if investors can afford to be patient. There’s reason to be optimistic that Rivian’s growth can continue. As InvestorPlace contributor Mohammed Saqib notes:

“Looking ahead, Rivian is focusing on expanding its product lineup and improving operational efficiency. The introduction of new models, such as the anticipated R2, is expected to broaden Rivian’s market appeal and drive future sales. Furthermore, Rivian’s ongoing efforts to enhance production efficiency and reduce costs are pivotal to its strategy to achieve and sustain profitability.”

If that is even partially true, RIVN stock will be well positioned to keep climbing over the coming months as Rivian expands its new EV line, in which interest has been high so far. The company’s road back to success has been slow but while it hasn’t been steady, it also isn’t unreasonable to think Rivian can continue to grow.

On the date of publication, Samuel O’Brient 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 Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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