Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) rose in premarket trading on Monday after the battering they received last week in the aftermath of the electric vehicle startup’s quarterly report.
The stock lost a whopping 38% in the week ended Feb. 23 and closed at a record low after the company announced 2024 deliveries guidance that came in notably below Street expectations. Following the earnings, sell-side analysts lowered their forward estimates for the company and, as an extension, their price targets for the stock.
The stock also suffered downgrades in the hands of JPMorgan, UBS and Truist Securities.
-
JPMorgan downgraded the stock from Neutral to Underweight and reduced its price target from $20 to $11.
-
UBS downgraded the stock from Buy to Sell and lowered the price target from $24 to $28.
-
Truist cut its rating on the stock from Buy to Hold and took down the price target from $26 to $11.
Monday’s rebound could be because the sell-off may have been overdone. Following last week’s dismal stock performance, Tesla investor Gary Black defended the company. He flagged the company’s likelihood of emerging as a credible number two to Tesla by 2030.
Black expects Rivian to be gross-margin positive by the fourth quarter, Black said, adding that the company’s cash bleed will drop significantly exiting 2024. He also raised the specter of Rivian customer Amazon potentially considering buying its electric delivery van supplier.
The company has a key catalyst in the near term as the Irvine, California-based company gears up to launch its second-gen R2 low-priced EV on Mar. 7.
For a reversal, the stock should fill the gap formed when it gapped down following the quarterly results and go past a key resistance around the $15 area. The stock is currently in oversold territory, going by its relative strength index.
In premarket trading, Rivian rose 1.09% to $10.18, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
See Also: Best Electric Vehicle Stocks
Photo Courtesy of Rivian Automotive
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Rivian Rebounds From Record Low In Premarket: What’s Going On With The Stock originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.