© Reuters Deutsche Bank downgrades Rivian (RIVN) as shares sink
Shares of Rivian Automotive (NASDAQ:) were down by more than 3.5% in pre-market trading Wednesday morning after Deutsche Bank downgraded the automaker to a Hold rating (From Buy) and cutting their 12-month price target to $19.00 (From $29.00).
Deutsche bank downgraded the automaker after realizing the downside risk to 2024 expectations around the company’s volume and gross margin. Although the planned unveiling of the R2 could positively impact sentiment, numerous questions persist after the announcement, including the timing of capital requirements, production ramp, and profitability.
“We expect 2024 volume guidance of just 65k units, amid prolonged factory shutdowns and slow ramp up.” Wrote analysts in a note.
Analysts believe the slowdown could lead to sustained significant losses until 3Q24, with the possibility of potential positive gross margins in the 4Q24, but only if executed flawlessly.
Shares of RIVN are down 3.48% in pre-market trading Wednesday morning.
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