DuoRivians
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I still think it's idiotic that the markets care so much what analysts think. But here you go:
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https://www.bloomberg.com/news/arti...rns-spur-76-price-target-cut-by-longtime-bull
A longtime bull on Rivian Automotive Inc. slashed his price target on the stock by three quarters, giving up on the electric-vehicle maker after a 92% wipeout in its shares.
Alexander Potter of Piper Sandler Cos. reduced his price target to a Wall Street low of $15 from $63, citing the company’s need to raise more than $4 billion to fund its growth. The analyst, who had an overweight recommendation since taking on coverage in 2021, cut his rating to neutral.
Potter’s new view is a long way from his $148 price target when he initiated coverage after the company’s November 2021 initial public offering. The stock peaked at $172.01 just after the IPO. In premarket trading Friday, Rivian fell 3.9% to $13.80 at 6:24 a.m. in New York.
Potter still likes the maker of plug-in pickups’ strategy of providing software, service and charging to capture revenue after a vehicle is sold, similar to that of larger rival Tesla Inc., he wrote in a report. However, that’s a costly, long-term approach at a time when capital markets are “disobliging,” he said.
“In this market, frugality matters more than ambition,” he wrote.
With the Federal Reserve raising interest rates over the past year, investors have shied away from unprofitable companies such as many electric-vehicle makers that depend on access to cheap capital to fund their businesses.
Rivian tumbled last month after the company’s production plans for this year fell short of Wall Street’s expectations. Fourteen analysts still recommend buying the shares, while six have the equivalent of hold ratings and two are at sell, according to data compiled by Bloomberg.
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https://www.bloomberg.com/news/arti...rns-spur-76-price-target-cut-by-longtime-bull
A longtime bull on Rivian Automotive Inc. slashed his price target on the stock by three quarters, giving up on the electric-vehicle maker after a 92% wipeout in its shares.
Alexander Potter of Piper Sandler Cos. reduced his price target to a Wall Street low of $15 from $63, citing the company’s need to raise more than $4 billion to fund its growth. The analyst, who had an overweight recommendation since taking on coverage in 2021, cut his rating to neutral.
Potter’s new view is a long way from his $148 price target when he initiated coverage after the company’s November 2021 initial public offering. The stock peaked at $172.01 just after the IPO. In premarket trading Friday, Rivian fell 3.9% to $13.80 at 6:24 a.m. in New York.
Potter still likes the maker of plug-in pickups’ strategy of providing software, service and charging to capture revenue after a vehicle is sold, similar to that of larger rival Tesla Inc., he wrote in a report. However, that’s a costly, long-term approach at a time when capital markets are “disobliging,” he said.
“In this market, frugality matters more than ambition,” he wrote.
With the Federal Reserve raising interest rates over the past year, investors have shied away from unprofitable companies such as many electric-vehicle makers that depend on access to cheap capital to fund their businesses.
Rivian tumbled last month after the company’s production plans for this year fell short of Wall Street’s expectations. Fourteen analysts still recommend buying the shares, while six have the equivalent of hold ratings and two are at sell, according to data compiled by Bloomberg.
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