Rivian Automotive downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Tom Narayan downgraded Rivian Automotive to Sector Perform from Outperform with a price target of $14, down from $28. While the firm argues that Rivian is "well positioned to capture market share as the industry shift towards electrification", in the near-term it sees limited catalysts to accelerate profitability and believes the company’s margins will "remain constrained." However, the firm also thinks the R2 reveal and production ramp can help sentiment and over the longer-term it believes Rivian’s "clean-sheet approach" and vertical integration will allow for higher margins at scale.