Rivian (NASDAQ:RIVN) stock is in focus after UBS analyst Joseph Spak raised his price target to $9 from $10. The change comes after the pure-play electric vehicle (EV) company reported its first-quarter earnings and maintained its 2024 production guidance of 57,000 vehicles compared to actual production of 57,232 vehicles in 2023. That disappointed shareholders, who were hoping for a guidance increase.
For Q1, revenue tallied in at $1.204 billion, beating the Factset estimate for $1.17 billion. EPS was a loss of $1.48, falling short of the estimate for a loss of $1.15.
On TipRanks, Spak is a 0.19 star analyst ranked at 8,503 among 8,826 Wall Street analysts tracked by the site. The analayst has a success rate of 51% and an average one-year return of -6.10%.
RIVN Stock: UBS Raises Price Target to $10 from $9
In mid-April, Spak upgraded RIVN stock to “sell” from “neutral” with a price target of $9. At the time, the analyst mentioned that RIVN was pricing in approximately $4.5 billion of 2025 sales compared to UBS’s estimate for $5.1 billion and the Street’s consensus for $7.1 billion.
Spak also added that RIVN had an elevated short interest. Based on the latest data, the stock had short interest of 18.8% as of April 15. Generally, a short interest above 10% is viewed as high, while a short interest of 20% or more is perceived as very high.
“Near- term upside catalysts could be if there is a positive update on R2 orders which would reinforce what Rivian can become, even if that growth is more likely in 2026/27,” said Spak.
Spak’s price target is now 25% higher than CFRA’s price target of $8, which is the lowest among all analysts. CFRA lowered its target to $8 from $10 earlier this year, citing demand, scale and cash burn issues. Garrett Nelson, the analyst behind the rating, believes that the company’s issues will continue over the next few quarters.
Among all analysts, RIVN stock carries an average price target of $16.43, implying upside of over 60%. Evercore ISI has the highest price target at $35 per share.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
