Rivian cut to Underperform at DA Davidson on R2 ramp risks

As previously reported, DA Davidson analyst Michael Shlisky downgraded Rivian (RIVN) to Underperform from Neutral with a price target of $14, down from $15. The stock jumped 27% on Friday due to positive tone of the R2 launch, but the firm believe that R1 outlook was below its expectations while also noting that R2 launch is not “without significant risks”, the analyst tells investors in a research note. To make its current outlook, Rivian will have to deliver the best mid-size EV launch since 2021 without the benefit of tax credits or a mass-channel dealer network, DA Davidson added.