1 Wall Street Analyst Warns That Rivian Stock Could Drop to $9
Last week, Rivian Automotive (NASDAQ: RIVN) unveiled not one, but two new prospective electric vehicles: The slimmed-down R2 electric SUV and an unexpected R3 electric hatchback. But investor beware: On Monday morning, investment bank UBS warned investors that not all is well with Rivian.
Despite raising its price target a bit to account for the potential gains of having two new vehicles to sell, UBS nonetheless retained its sell rating on Rivian stock and set a price target of $9, which would be 27% below its price on Tuesday morning.
UBS is not a total Rivian bear. To the contrary, in its note covered on TheFly.com Monday morning, the Swiss banker praised Rivian's decision to postpone construction of a new factory in Georgia, and begin building its new R2 EV at its existing plant in Normal, Ill., instead. UBS observed that this move will save Rivian more than $2.25 billion (well, until it ends up spending the $2.25 billion anyway, and eventually builds the Georgia plant).
Source Fool.com
