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.