Rivian (NASDAQ:RIVN) stock is in the red today despite a positive note from Truist Securities. The fall is based on macroeconomic factors rather than company-specific factors, as the S&P 500 is down by about 2% today.
Truist analyst Jordan Levy raised his RIVN stock price target to $16 from $13 while reiterating a “hold” rating. Levy’s price target was as high as $65 back in September 2022.
Levy applauded Rivian’s efforts to adjust its growth plans in order to save on costs. He’s likely referring to the company’s decision to pause construction on its $5 billion plant in Georgia, allowing it to save roughly $2.25 billion in the process.
Levy was also optimistic about Rivian’s $5 billion deal and joint venture with Volkswagen (OTCMKTS:VWAGY), adding that Rivian will be able to fund its next phase of development without concern for capital.
RIVN Stock: Truist Raises Price Target to $16 From $13
Levy believes that a key priority for the electric vehicle (EV) company moving forward is achieving a breakeven gross margin for the R1 SUV by the end of the year.
“In the upcoming print we’re focused on concrete cost-down progress on R1, customer response to the updated R1 series, and any updates to VW talks,” said the analyst.
On TipRanks, Levy ranks at number 8,832 among 8,966 Wall Street analysts. He has a success rate of 30% and an average one-year return of a loss of 17.2%.
Across the board, analysts have an average price target of $18.77 per share for RIVN stock.
Truist’s price hike comes amid a series of concerning announcements. On July 1, Chief Accounting Officer Jeffrey Baker informed Rivian of his resignation, effective as of July 27. Then on July 23, a judge ruled that Rivian must go to trial with Tesla (NASDAQ:TSLA) after Tesla alleged that Rivian had poached its employees and stole trade secrets.
To top if off, Chief Commercial Officer and President of Business Growth Dr. Kjell Gruner notified Rivian of his resignation on July 24, effective as of July 26. Gruner will remain with Rivian until Feb. 17, 2025 to help with the transition process.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
