Bank of America Securities analyst Federico Merendi reiterated a Sell rating on Rivian Automotive today and set a price target of $10.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Federico Merendi’s rating is based on Rivian Automotive’s financial performance and future outlook. The company reported a significant miss in its third-quarter EBITDA results, primarily due to higher operating expenses, which were above expectations. This was largely attributed to increased costs associated with the development of the R2 platform and expansion of market operations.
Additionally, while Rivian’s revenue exceeded expectations, the auto gross profit margin was lower than anticipated, reflecting ongoing financial challenges. Despite maintaining its delivery and financial guidance, the company’s future projections remain cautious, with limited initial production volumes for the R2 model. These factors, combined with the unchanged price objective, led to the reiteration of the Sell rating.
In another report released yesterday, Mizuho Securities also maintained a Sell rating on the stock with a $10.00 price target.