RIVN Stock Alert: Cantor Fitzgerald Just Issued a Big Rivian Warning

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Rivian (NASDAQ:RIVN) stock is in the red today after Cantor Fitzgerald downgraded the electric vehicle (EV) company to “neutral” from “overweight.” At the same time, Cantor Fitzgerald lifted its price target to $29 from $27 per share.

Analyst Andres Sheppard was behind the downgrade, citing competition from Tesla’s (NASDAQ:TSLA) upcoming Cybertruck and other trucks from Ford (NYSE:F) and General Motors (NYSE:GM). Sheppard also believes that RIVN’s recent price appreciation has made it “properly valued.”

On TipRanks, Sheppard carries a less than one star out of five stars rating and is ranked at number 8,312 out of 8,553 Wall Street analysts tracked by the site. During the past year, the analyst has had an average success rate of 26% with an average loss of 22% per transaction.

Cantor Fitzgerald Downgrades RIVN Stock

Despite the downgrade, Cantor has raised its 2023 estimated production to 54,000 vehicles from 49,750 vehicles. Among all 20 Wall Street analysts tracked by Yahoo Finance, RIVN stock carries an average price target of $25.85. The highest price target sits at $40 per share while the lowest is $14.

Cantor’s downgrade comes just a few days after Needham reiterated its “buy” rating for RIVN and raised its price target to $31 from $28. Using Needham’s EV Original Equipment Manufacturer (OEM) Used Vehicle Price Tracker, analyst Chris Pierce concluded that Rivian vehicles have shown less depreciation and re-sale sentiment when compared to other trucks.

“RIVN’s competitive advantages are shining brighter […] with the company emerging as a demand creator when considering that the majority of its buyers have never previously purchased a pickup truck,” explained Pierce.

Unlike Cantor, however, Needham did not raise its 2023 production forecast. Still, Pierce wouldn’t be surprised to see increased profit margins due to higher deliveries and economies of scale.

Rivian is slated to report its second-quarter earnings on Aug. 8 after the market close. The company previously announced that it had produced 13,992 vehicles and delivered 12,460 of them during the quarter. Analysts were expecting production of 10,945 vehicles and deliveries of 10,752 vehicles. For the entire year, Rivian has provided guidance of 50,000 vehicles. So far this year, it has produced 23,387 vehicles and delivered 20,406. With those numbers in mind, Rivian seems well-positioned to achieve its 2023 production guidance.

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. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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