It seems like analysts just can’t agree about electric vehicle manufacturer Rivian Automotive (NASDAQ:RIVN). Some of them reduced their price targets on the stock while also publishing “buy” or “hold”-equivalent ratings on Rivian shares. So, we’ll just have to conduct our own RIVN stock analysis. In the end, I think you’ll find that it’s a great time to invest in Rivian.
This year should be an exciting one for Rivian Automotive and its stakeholders. Currently, Rivian is getting ready to build its second EV manufacturing plant in Georgia. Yet, apparently some investors and analysts see little upside potential for Rivian stock. Maybe they’re wrong, and maybe there’s an opportunity here.
RIVN Stock: Weighing the Concerns and Opportunities
Let’s start off with the elephant in the room: Ford (NYSE:F) reduced the production pace of its F-150 Lightning EV model and will transition around 1,400 workers because of weak EV demand.
Knowing this, RIVN stock investors might worry about weak demand for Rivian’s R1T truck model. However, there aren’t any company-specific press releases indicating soft demand for the R1T.
At this point, investors should wait for more data from Rivian Automotive instead of jumping to conclusions. Maybe the “EV winter” will end soon and won’t be as bad as the panic-sellers think it is.
I seriously doubt that giant companies like Amazon (NASDAQ:AMZN) and AT&T (NYSE:T) would forge fleet-electrification deals with Rivian Automotive if they didn’t have conviction in Rivian. With RIVN stock recently falling to the $15 area, it feels like the market is simply ignoring Rivian Automotive’s growth opportunities.
Analysts Drop Their Rivian Stock Price Targets
It’s an interesting phenomenon when analysts lower their price targets on a stock but still issue “buy” or “hold”-equivalent ratings on that same stock. Here are some examples for Rivian stock:
- Barclays analyst Dan Levy: “Overweight” rating but price target lowered from $27 to $25. “We believe the company’s leading EV portfolio and path of improvement make it a structural winner,” Levy remarked.
- Needham analyst Chris Pierce: “Buy” rating but price target reduced from $25 to $22. According to TheFly, the Needham analysts feel that “used vehicle pricing data and vehicle inventories” support their “confidence in Rivian end demand.”
- Deutsche Bank analyst Emmanuel Rosner: “Hold” rating and price target cut from $29 to $19.
- Goldman Sachs analyst Mark Delaney: “Neutral” rating and price target lowered from $20 to $17.
It’s unlikely that these analysts would recommend buy or holding a stock if they hated it. Without a doubt, the analysts have to weigh Rivian Automotive’s challenges, such as the low-demand “EV winter,” against the company’s opportunities, such as Rivian’s upcoming R2 vehicle model production.
Here’s the kicker, though. If you see RIVN stock at $15 or $16, this it’s below all of the aforementioned price targets. To me, this suggests that the market has already priced in all of Rivian Automotive’s challenges and worst-case scenarios. Again, there’s a sense that investors are completely overlooking Rivian’s opportunities to grow and recover in 2024.
Rivian Stock Analysis: Buy Low, Don’t Sell High
People say that they like to “buy low and sell high.” So, here we are and our RIVN stock analysis reveals a “buy low” scenario that you can take advantage of right now. The Rivian Automotive is already below Wall Street’s forecasts, and the market is evidently baking worst-case scenarios in the pie.
So, if you’re serious about “buy low, sell high,” then take a look at Rivian stock today. Better yet, grab a handful of Rivian shares while they’re still cheap. And don’t worry about the “sell high” part, as you may decide to put this stock in the “hold forever” category at some point.
On the date of publication, David Moadel 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.
