Shares of Rivian Automotive (NASDAQ: RIVN) slipped in pre-market trading on Friday after top-rated Piper Sandler analyst Alexander Potter lowered the analyst rating to Hold from a Buy with the lowest price target on the Street of $15. The analyst’s price target implies an upside potential of 4.4% at current levels.
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The analyst reasoned that Rivian’s current strategy is likely to require $4 billion of funding for long-term growth beyond 2025. While Potter is positive about the EV maker’s fundamental business strategy, the analyst still believes that the funding problems need to be addressed.
In Q1, Rivian’s vehicle deliveries came in better-than-expected.
Analysts are cautiously optimistic about RIVN stock with a Moderate Buy consensus rating based on 12 Buys and six Holds.