Rivian ($RIVN) Rebounds From Record Low In Premarket Move
Shares of Rivian Automotive, Inc. (
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 plummeted by about 38% in the week ended Feb. 23 and closed at a record low after the company announced 2024 deliveries guidance that fell 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.
Rivian Inc. (RIVN) also suffered downgrades in the hands of JPMorgan, UBS and Truist Securities. JP Morgan 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.
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 $16 area. The stock is currently in oversold territory, going by its relative strength index.
In premarket trading, Rivian (RIVN) rose 1.09% to $10.18 and suddenly plummeted by about 2%.
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 plummeted by about 38% in the week ended Feb. 23 and closed at a record low after the company announced 2024 deliveries guidance that fell 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.
Rivian Inc. (
RIVN) also suffered downgrades in the hands of JPMorgan, UBS and Truist Securities. JP Morgan 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.
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 $16 area. The stock is currently in oversold territory, going by its relative strength index.
In premarket trading, Rivian (
RIVN) rose 1.09% to $10.18 and suddenly plummeted by about 2%.
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