Needham Just Slashed Its Price Target on Rivian (RIVN) Stock


  • Needham recently cut Rivian’s price target to $13 per share, from $18.
  • The financial services believes its prior valuation may have been a bit high, given the company’s projected adjust earnings.
  • Still, Needham maintains its “Buy” rating, and believes Rivian will come out of its rut this year that’s seen the EV maker lose more than 50% of its value.
RIVN stock - Needham Just Slashed Its Price Target on Rivian (RIVN) Stock

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Rivian (NASDAQ:RIVN) stock is the talk of Wall Street today after Needham lowered its price target on the electric vehicle (EV) maker to $13 per share from $18. According to the financial services company, the slashed outlook results from an evaluation of Rivian’s first quarter production and sales data and new model unveilings.

According to Needham analysts, the new price target is the product of a lower valuation multiple on its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for 2028. Indeed, Needham foresees headwinds for Rivian due to a slow EV adoption before the release of its upcoming R2 model.

That said, Needham remains confident in Rivian, citing that its pricing resilience for its R1S used vehicles has been notably better than expected. The company also hasn’t experienced quite the same drop in demand felt by other EV makers recently.

Needham also strongly opposes Rivian’s decision to hold off on expanding its Georgia manufacturing plant to reduce capital spending.

Despite the reduced price target, Needham maintains its “buy” rating on RIVN stock.

RIVN Stock Climbs Despite a Price Target Cut

Despite the lower valuation, Rivian stock is enjoying a strong day in the market so far. Indeed, RIVN is up about 1% heading to the bell, though that won’t do much to reverse the company’s otherwise disappointing year.

Indeed, RIVN stock is down 58% year-to-date, trending around its lowest level ever. Not alone, other former darlings like Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO) are also down big so far this year in an outright brutal selloff for EV makers.

Needham still has some confidence in Rivian, however. At its current price of $8.80 per share, Needham’s $13 price target implies a nearly 50% upside. Other analysts are even more bullish on RIVN, with the average analyst price target hovering around $16.50 a share.

On the date of publication, Shrey Dua 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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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