In a report released today, Adam Jonas from Morgan Stanley maintained a Hold rating on Rivian Automotive (RIVN – Research Report), with a price target of $13.00.
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Adam Jonas has given his Hold rating due to a combination of factors surrounding Rivian Automotive’s current position and future potential. While Rivian is strategically positioned to leverage its integrated hardware and software capabilities for AI and robotics, there are significant challenges ahead. The company’s ability to generate profit from electric vehicles and manage the financial demands of computing resources remains a concern.
Rivian’s efforts to improve unit economics with the R2 model, including better supplier negotiations and reduced bill of materials, are promising. However, the transition from R1 to R2 and the advancements from AV 1.0 to AV 2.0 must be substantial to ensure success in the evolving AI-driven automotive landscape. Additionally, Rivian’s focus on data and AI, particularly in advanced driver-assistance systems, is crucial, but its relatively small fleet size poses challenges in data collection and training.
Jonas covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Ferrari, and Rivian Automotive. According to TipRanks, Jonas has an average return of 4.4% and a 51.72% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $14.00 price target.