markets

Luke Kawa2/24/25

Rivian cut to “underperform” by Bank of America

Bank of America now thinks electric vehicle company Rivian will lag its automaker peers, with analysts downgrading the stock to underperform from neutral and lowering their price target to $10 from $13.

Though the stock is taking a bath this morning amid the downgrade, that price is still about 15% below where the shares are currently trading. The average analyst’s price target for the shares is $14.64.

Analysts led by John Murphy cite “risks piling up” for the company, namely:

A weaker-than-expected 2025 outlook for the company;
A dim outlook for EVs generally;
More competition in the EV market, particularly in the sport and crossover utility space, which could limit sales of its upcoming R2; and
The potential for the Trump administration to try to claw back a loan closed during the twilight hours of the Biden administration.

Though Rivian posted its first quarterly gross profit last week, it’s still a cash-burning machine.

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Micron reports another stellar quarter and blowout guidance

The memory chip specialist did it again.

7th China International Import Expo (CIIE) Opens In Shanghai

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Stocks sink as inflation fears rise

Stocks sank after a hotter-than-expected producer price index reading as well as a higher inflation forecast from the Fed amid rising energy prices.

Brown bear on a rock

Hyperscalers and hard hats

If you build it, gains will come

Construction workers

Federal Reserve leaves rates unchanged; dot plot still signals lower rates in the cards for 2026

A relatively dovish reaction function from the US central bank.

Fed Chair Jerome Powell Holds An News Conference On Interest Rates

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Matt Phillips9h

Constellation, Talen, and NRG surge as BNP analysts see “golden (AI)ge” ahead for them

Power producers Talen Energy, Constellation Energy, and NRG jumped Wednesday, benefiting in part from a rosy write-up by analysts at BNP Paribas, who launched coverage of all three at “outperform” and argued that the AI energy trade — a big AI-related winner in recent years that has lagged a bit recently — is due for a second wind.

That view was in a broad note on the independent power producer segment of utilities industry that the analysts published Wednesday, titled “The Golden (AI)ge of IPPs.”

Here’s the gist of it:

US independent power producers (IPPs) have lagged the AI basket for 6+ months, after garnering much attention in 2023-1H25. Investors are caught up in the minutia of perceived headwinds: underwhelming pace of power purchase agreement deals, distributed behind-the-meter solutions stealing the ‘time-to-power’ edge, pressure for data centers to bring generation and not tighten the grid, etc.

And yet, as we demonstrate, despite all this noise, the wave of rising load is at the cusp of an acceleration that will nonetheless overwhelm new supply—well into the 2030s, in our view. Hop on or risk missing the resurgent AI trade this decade.

BNP’s price targets for the stocks — Constellation ($407), NRG ($232) and Talen ($549) — implied gains of 32%, 50%, and 68% respectively. (Though today’s gains would reduce those potential upside targets somewhat for new buyers.)

US independent power producers (IPPs) have lagged the AI basket for 6+ months, after garnering much attention in 2023-1H25. Investors are caught up in the minutia of perceived headwinds: underwhelming pace of power purchase agreement deals, distributed behind-the-meter solutions stealing the ‘time-to-power’ edge, pressure for data centers to bring generation and not tighten the grid, etc.

And yet, as we demonstrate, despite all this noise, the wave of rising load is at the cusp of an acceleration that will nonetheless overwhelm new supply—well into the 2030s, in our view. Hop on or risk missing the resurgent AI trade this decade.

BNP’s price targets for the stocks — Constellation ($407), NRG ($232) and Talen ($549) — implied gains of 32%, 50%, and 68% respectively. (Though today’s gains would reduce those potential upside targets somewhat for new buyers.)

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