Rivian Automotive resumed with Buy, reduced target at BofA

BofA resumed coverage of Rivian Automotive with a Buy rating and price target of $40, down from $50. The company’s Q4 results "were just ok" and its 2023 volume outlook of 50,000 was lighter than expected, the analyst tells investors in a research note. The analyst reduced estimates to reflect the report as well as the company’s earlier than expected capital raise. The raise was largely expected as Rivian’s cash burn remained elevated in 2022, but comes sooner than forecast, the analyst tells investors in a research note. However, the firm still believes Rivian is one of the most viable among the start-up electric vehicle automakers and a relative competitive threat to incumbent car makers.