Rivian stock price target lowered to $12 from $13 at Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has lowered its price target on Rivian Automotive Inc (NASDAQ:RIVN) to $12.00 from $13.00 while maintaining an Equalweight rating on the stock. The electric vehicle maker, currently trading at $11.69 with a market capitalization of $14.5 billion, has seen its stock decline over 10% year-to-date according to InvestingPro data.

The firm cited concerns about the upcoming R2 vehicle launch amid challenging demand conditions for electric vehicles and significant capital requirements needed to compete in autonomous vehicle technology.

Morgan Stanley noted that while Rivian has potential in AI-enabled autonomy, it remains cautious about the company’s prospects with its steering-wheel-equipped R2 model.

The analyst report acknowledged that Rivian’s partnership with Volkswagen (ETR:VOWG_p) helps reduce stock volatility but may also limit the company’s growth opportunities.

Morgan Stanley maintained its Equalweight rating on Rivian shares despite the reduced price target, suggesting a neutral outlook on the stock’s performance.

In other recent news, Rivian Automotive Inc has faced multiple price target reductions from prominent analyst firms following its second-quarter results. UBS lowered its price target to $12, citing disappointing margins and an increased EBITDA loss forecast for 2025. DA Davidson also adjusted its price target to $13, highlighting challenges such as a skittish consumer and the impact of tariffs on vehicle profitability. Stifel reduced its price target to $16, pointing out concerns about the end of EV tax credits and production line downtime ahead of the R2 vehicle launch. TD Cowen brought down its price target to $13 due to an EBITDA miss and reduced guidance amid industry headwinds. Piper Sandler set its new target at $14, expressing concerns over EV demand following the company’s reduced guidance. These developments reflect a cautious outlook from analysts on Rivian’s near-term performance.

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