Electric vehicle (EV) manufacturer Rivian (NASDAQ: RIVN) has received an update from Wall Street following the firm’s announcement of key changes to its business structure.
Notably, Rivian stock has had an impressive run in recent sessions, gaining over 10% in the past week. On the monthly chart, RIVN is up 7%. However, as of press time, Rivian’s share price was showing weakness, down almost 0.8% at $12.26.
Analyst updates Rivian stock
Regarding the stock outlook, Truist Securities reaffirmed its ‘Hold’ rating on Rivian on March 26 and maintained a price target of $14.
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The update comes amid Rivian’s strategic decision to spin off its micro-mobility unit into a new company. Notably, the EV maker disclosed the creation of Also., a new venture dedicated to micro-mobility, focusing on commercializing small electric vehicles such as e-bikes, neighborhood EVs, and microcars.
The spin-off is backed by a $105 million investment from Rivian and venture capital firm Eclipse Ventures. Rivian will retain a minority stake in Also, with Rivian executive Chris Yu appointed as CEO of the new company and CEO RJ Scaringe joining the board. The new entity is set to launch its flagship consumer product in the fall of 2025.
Truist Securities analyst Jordan Levy provided a cautious yet optimistic take on the development, emphasizing the potential long-term value of Rivian’s minority stake in Also.
“Rivian’s spin-off Also introduces an optional play in micromobility, but it’s too early to gauge its long-term impact. <…> With Also planning to launch its flagship consumer product this fall, in our view, it’s too early to determine what this could mean long-term for RIVN. We would view the minority stake as long-term option value on the micro-mobility market at this stage,” Levy stated.
Despite uncertainties, including the unclear financial impact of the spin-off and competitive risks in the micro-mobility sector, Truist Securities maintains a bullish outlook as the firm awaits more clarity regarding the new venture.
Wall Street pessimistic on Rivain stock
Overall, Wall Street’s outlook remains mostly bearish and cautious regarding the EV maker’s next course.
For instance, on March 20, Piper Sandler downgraded Rivian from ‘Overweight’ to ‘Neutral’, slashing its price target from $19 to $13. The firm acknowledged Rivian’s strengths, including its self-reliance in electronics and software and its recent Volkswagen joint venture, which improved its balance sheet. However, analysts struggled to identify key growth drivers for 2025.
On March 17, Mizuho’s Vijay Rakesh also cut Rivian’s price target from $13 to $11 while maintaining a ‘Neutral’ rating. The firm recognized Rivian’s solid EV portfolio but cited limited near-term catalysts, reducing estimates due to tariffs and an overall slowdown in the EV sector.
Bernstein analyst Daniel Roeska remained the most bearish, reiterating an ‘Underperform’ rating with a price target of just $6.10. The firm pointed to Rivian’s challenges in a slow U.S. battery electric vehicle (BEV) market and its relatively narrow product lineup as key obstacles to growth.
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