Rivian (NASDAQ:RIVN) stock is sliding lower on Friday after UBS analysts hit the electric vehicle (EV) company’s shares with a double downgrade this morning.
UBS analyst Joseph Spak dropped RIVN stock from a “buy” rating to a “sell” rating. That’s below the analyst consensus rating of hold for RIVN shares based on 23 opinions.
With that downgrade comes a decreased price target. This saw the analyst cut the firm’s price prediction from $24 per share to just $8. That’s a potential 30.1% drop from its prior closing price. It’s also below the analyst consensus of $22.45 per share.
What’s Behind the Bear Stance on RIVN Stock?
Here’s what the UBS analyst had to say about Rivian in a note to clients obtained by CNBC:
“We had been optimistic on RIVN’s product and brand ultimately winning out […] But a rapidly changing EV backdrop causes us to reassess our demand view and makes RIVN’s current strategy quite onerous on the ramp to profitability and cash flow.”
Shares of RIVN stock are falling 9% on Friday morning following the UBS downgrade. The stock has also seen some 26 million shares change hands, as compared to its daily average of about 36.4 million shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
