Shares of Rivian Automotive experienced a significant decline in value following the release of its quarterly report, with a 38% loss in the week ended February 23rd. The company's 2024 delivery guidance fell short of market expectations, causing sell-side analysts to lower their forward estimates and price targets for the stock.
Several major investment banks downgraded Rivian's stock, including JPMorgan, UBS, and Truist Securities. JPMorgan reduced its rating from Neutral to Underweight and lowered its price target from $20 to $11. UBS downgraded the stock from Buy to Sell and lowered its target from $24 to $28. Truist cut its rating from Buy to Hold and decreased its target from $26 to $11.
However, Rivian's stock price has rebounded in premarket trading on Monday. This may be due to the perception that the recent sell-off was excessive. Tesla investor Gary Black has defended the company, highlighting its potential to become a significant competitor to Tesla in the long term. Black expects Rivian's financial performance to improve in the coming quarters.