Morgan Stanley Adjusts Rivian (RIVN) Price Target to $12.00, Analyst Maintains Equal-Weight Rating.

Morgan Stanley has maintained its 'Equal-Weight' rating for Rivian Automotive (RIVN) but lowered its price target from $13.00 to $12.00, a 7.69% decrease. Historically, Rivian has seen maintained ratings with lowered price targets from various analysts. The average target price for Rivian is $14.25, with an upside of 17.63% from the current price of $12.12. The average brokerage recommendation is 2.7, indicating a 'Hold' status.

Morgan Stanley has reduced its price target for Rivian Automotive Inc. (NASDAQ: RIVN) from $13.00 to $12.00, a 7.69% decrease. Despite this adjustment, the firm has maintained its 'Equal-Weight' rating, indicating a neutral outlook on the stock's performance. This latest move follows a series of price target reductions from other prominent analysts in response to Rivian's recent financial performance and the upcoming launch of its R2 vehicle.

Rivian's stock has been trading near $11.69, with a market capitalization of approximately $14.5 billion, and has seen a year-to-date decline of over 10%. The company has faced significant challenges, including concerns about the upcoming R2 vehicle launch, demanding capital requirements for autonomous vehicle technology, and volatile demand conditions for electric vehicles. Morgan Stanley cited these factors in its decision to lower the price target.

Other analysts have also revised their price targets for Rivian. UBS lowered its target to $12, citing disappointing margins and an increased EBITDA loss forecast for 2025. DA Davidson adjusted its target to $13, highlighting challenges such as a skittish consumer and the impact of tariffs on vehicle profitability. Stifel reduced its target to $16, pointing out concerns about the end of EV tax credits and production line downtime ahead of the R2 vehicle launch. TD Cowen brought down its target to $13 due to an EBITDA miss and reduced guidance amid industry headwinds. Piper Sandler set its new target at $14, expressing concerns over EV demand following the company’s reduced guidance.

Despite these challenges, Rivian has secured a $1 billion equity investment from Volkswagen Group and plans for peak deliveries in Q3. The company aims to compete with internal combustion engine (ICE) vehicles in the $45k–$50k segment and continues to make progress on its R2 platform and autonomous driving technology development.

In conclusion, Rivian Automotive faces significant challenges in the near term, as analysts have revised their price targets and ratings in response to the company's recent earnings reports. However, the company maintains a strong liquidity position, suggesting adequate resources for its development initiatives. Rivian's long-term prospects will depend on its ability to address profitability issues and execute on its medium-to-long-term initiatives.

References:
[1] https://www.investing.com/news/analyst-ratings/rivian-stock-price-target-lowered-to-12-from-13-at-morgan-stanley-93CH-4185368
[2] https://www.tradingview.com/news/gurufocus:ad7827ec6094b:0-rivian-stock-slips-as-morgan-stanley-slashes-price-target-to-12/
[3] https://www.ainvest.com/news/analyst-reiterates-hold-rating-rivian-automotive-13-price-target-2508/