Rivian now trading just below cash value, says Morgan Stanley

Morgan Stanley analyst Adam Jonas estimates that at $13 per share, Rivian Automotive’s stock trades "just below its cash value" and that the stock price is "discounting continued cash burn that lasts for years, not quarters." From the firm’s talks with investors following the Q4 conference call, Morgan Stanley notes "not just the preponderance of negative sentiment around the name, but also frustration around strategy and lack of conviction in the strategic direction of the company." While the firm understands it may take several quarters for the company to establish an execution track-record to rebuild trust with investors, Rivian (RIVN) remains the only EV start-up name the firm recommends in its U.S. coverage outside of Overweight-rated Tesla (TSLA) as the firm remains "compelled" by the company’s differentiated product, scalable end markets, cost cutting potential, cash and valuation. Morgan Stanley keeps an Overweight rating and $26 price target on Rivian shares.