JPMorgan sees the partnership with Uber (UBER) as a “mostly positive” for Rivian (RIVN), saying it provides an external endorsement of its autonomous technology potential. The deal is also helpful in the context of Rivian’s continued large cash burn, the analyst tells investors in a research note. However, JPMorgan keeps an Underweight rating on Rivian with a $9 price target. The company’s is posting “persistently large” operating losses and free cash outflows as it seeks to navigate a “seemingly increasingly structurally unprofitable” electric vehicle market, the analyst tells investors in a research note.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on RIVN:
- Rivian: Structurally Challenged EV Economics and Persistent Cash Burn Justify Underweight Rating and $9 Target
- Rivian: Buy Rated on EV Growth Potential, Brand Strength, and Attractive Entry Valuation Despite Near-Term Volatility
- Rivian price target raised to $22 from $21 at Canaccord
- Uber Branded ‘AV Winner’ after $1.25B Rivian Deal — Why Is the Stock Sliding?
- Rivian Stock (RIVN): Uber’s $1.25B Deal “Positive Development Toward Building Traction”