Multinational investment bank Jefferies has downgraded Rivian stock (NASDAQ: RIVN) from a ‘Buy’ rating to a ‘Hold’ rating, citing sluggish demand outlooks for the rest of 2025.
In a note shared with investors, equity researcher Philippe Houchois praised the company’s Q1 2025 earnings (published on May 6) as better than expected, and noted management’s progress in driving R1 variable unit costs down and managing cash carefully.
Houchois also highlighted Rivian’s brand equity story and software achievements as positives — but cautioned that the downbeat demand outlook for this year was the key driver behind the Rivian stock rating downgrade.
Lastly, Houchois stated that Jefferies is waiting for updates on R2 progress and hoping for third-party opportunities in energy efficiency/software-defined vehicles as avenues for potential growth and a possible re-rating of the stock.
Despite downgrade, Jefferies forecasts a decent upside for Rivian stock
With that being said, Jefferies’ price target on the electric vehicle (EV) stock remains unchanged, at $16.
As of press time on May 14, RIVN shares were trading at $14.68, having gained 10.34% in value since the start of 2025. Accordingly, Houchois’ revised price target implies an 8.99% upside compared to current prices.
While Rivian has promising growth fundamentals that could eventually see it reach a price of $20 per share, most of the near-term growth already appears to be priced in. The price of Rivian stock has already risen above the average 12-month price forecast set by Wall Street analysts as of mid-April — and Jefferies’ latest coverage is in line with most of the Street’s recent commentary, which is trending toward ‘Hold’ ratings.
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