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Wedbush Securities lowered its worth goal on Rivian Automotive (NASDAQ:RIVN) to $25 on the heels of the electrical car maker’s announcement of a $1.5B convertible observe providing.
Analyst Dan Ives and staff mentioned they absolutely get the capital wants down the street for Rivian Automotive (RIVN) because it ramps manufacturing and deliveries over the approaching years, however sees the Road’s low confidence within the administration staff round investor messaging and execution as a serious downside and overhang for the inventory.
“One step ahead, two steps again is the theme for Rivian the previous few years and the corporate has turned the nook from a manufacturing perspective and navigated many challenges YET continues to stumble with head scratching strategic/funding strikes many times with this newest convert transfer alongside these traces.”
Wedbush Securities mentioned it stays bullish on Outperform-rated Rivian’s (RIVN) development prospects and consider the corporate has a strong path to grow to be one of many long run winners within the electrical car arms race over the approaching years though the agency’s confidence within the story has taken a transparent hit.
The brand new worth goal on Rivian Automotive (RIVN) from Wedbush is famous to replicate a decrease a number of as the danger profile for RIVN has been elevated within the agency’s view with a key “show me” interval forward.
Rivian Automotive (RIVN) is scheduled to report earnings and maintain a convention name on November 7.
Shares of Rivian Automotive (RIVN) fell 2.45% in premarket buying and selling to $18.46 vs. the 52-week buying and selling vary of $11.68 to $36.45.