Rivian Automotive Stock Has 26% Upside, According to This Wall Street Analyst
Rivian Automotive (NASDAQ: RIVN) received several downgrades from analysts in the wake of its fourth-quarter earnings report released on Feb. 21. Revenue more than doubled last year, but rising interest rates are starting to take a toll on electric vehicle (EV) demand. Management expects production in 2024 to be flat year over year at 57,000 units.
Morgan Stanley cut its price target on the stock to $14 from $24. The new price target is 26% higher than Rivian's current share price. Despite the negative sentiment around the stock right now, Morgan Stanley is still optimistic about Rivian's future, as it maintained an overweight (buy) rating on the stock.
The average analyst recommendation still has a buy rating on the stock. Optimism on the company's future is based on Rivian's emerging brand in electric vehicles and sophisticated online car buying experience. It also continues to be backed by Amazon, which held 158 million shares of Rivian class A common stock at the end of 2023.
Source Fool.com
