Baird downgraded RIVN to "neutral" and cut its price target to $16
Shares of electric Vehicle (EV) firm Rivian Automotive Inc (NASDAQ:RIVN) are 1.4% lower premarket, following a bear note at Baird. The analyst in question downgraded RIVN to "neutral" from "outperform" and cut its price target to $16 from $18, estimating lower EV sales expectations and "few catalysts in 2025" as the prime driving factor.
Analysts are currently split on Rivian stock. While 13 rated the equity a "hold" or worse coming into today, 12 recommended a "buy" or better. This leaves room for additional downgrades to roll in, which could be overdue considering the stock's 37.3% year-to-date deficit.
While RIVN is set to pullback slightly today, the $14 -- a level of resistance in September -- should continue to serve as a layer of support. In addition, recently reclaimed support from its 260-day moving average should also provide a cushion for any further losses.
An unwinding of optimism in the options pits could pressure Rivian stock even more. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 3.38 stands higher than 89% of readings from the past 12 months.
The stock tends to outperform these volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 90 out of 100. This provides a good opportunity for speculators to bet with premium.