Rivian: A Reality Check Is Coming (Rating Downgrade)
Rivian Automotive has been downgraded to a 'sell' rating due to unfavorable risk-reward dynamics. The company is experiencing negative gross margins in its automotive segment, despite a 49% year-over-year growth in software and services. Analysts predict a significant downside risk for the stock, making it an unattractive investment at this time.
- ▪Rivian's automotive segment is facing pressures on both top and bottom lines with negative gross margins.
- ▪The R2 production ramp is expected to further depress gross margins through Q2 and Q3.
- ▪Wall Street price targets suggest a 36% downside risk to $9 per share.
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