Top Mizuho Analyst Recommends Selling as Rivian Stock (RIVN) is Downgraded Before Earnings Release
Rivian Automotive (RIVN), an electric vehicle manufacturer, is preparing to announce its third-quarter earnings on November 4. In the lead-up to this release, Vijay Rakesh, a prominent analyst at Mizuho Securities, has downgraded Rivian’s stock rating from Neutral to Underperform. He has also reduced his price target for the stock from $14 to $10 per share, suggesting a significant 23% decline from current valuations.
Concerns Over Rivian’s Future Growth
Rakesh has expressed concern regarding declining demand for electric vehicles (EVs) in North America. He indicated that the expiration of U.S. government incentives will likely hinder Rivian’s growth in the coming year. Furthermore, the analyst predicts that the overall EV growth will remain stagnant through 2026, complicating Rivian’s goal of a 69% year-over-year increase in vehicle deliveries.
Analyst’s Revised Forecasts
- Predicted vehicle deliveries for 2026: 60,000, down from 68,000.
- Market expectation for 2026 deliveries: approximately 72,000.
- Average vehicle price: Over $70,000, which may restrict short-term sales growth.
Rakesh further noted that other automakers, such as General Motors (GM), have already faced substantial write-downs in their EV sectors, indicating a broader downturn in market demand. He emphasized that Rivian’s optimistic growth targets appear “too aggressive” amidst the current market conditions.
Market Consensus on Rivian Stock
On Wall Street, the consensus rating for RIVN stock is currently Hold. This rating reflects a split based on recent assessments: seven analysts suggest buying, ten recommend holding, and five advise selling the stock. The average price target for Rivian shares stands at $13.65, which reflects a modest upside potential of 4.76% from current levels.
As Rivian approaches its earnings announcement, investors should consider these insights and reassess their positions regarding RIVN stock based on evolving market dynamics.
