Jefferies analyst downgraded RIVN it "hold"
Shares of Rivian Automotive Inc (NASDAQ:RIVN) are 2.9% lower to trade at $14.45, on track to snap a four-day win streak after a bear note from Jefferies. The brokerage firm downgraded the auto parts manufacturer to "hold" from "buy," saying that despite a quarterly earnings beat, concerns surrounding the company's R2 program, outside partnerships, and a weak demand outlook weighed.
Just yesterday RIVN touched its highest level since January, following an early May pullback that was captured by its ascending 20-day moving average. Despite today's drop, the equity remains above its year-to-date breakeven mark.
Heading into today, nearly 70% of the 26 covering brokerages carried a "hold" or worse recommendation. However, with eight analyst still maintaining a "buy" or better and the 12-month average price target coming in at $14.59, there remains plenty of room for more downgrades and price-target cuts.
Short interest has risen 11.7% during the past two reporting periods, which now accounts for more than 20% of the stock's total available float. At the stock's average pace of daily trading, it would take shorts nearly five days to buy back their bearish bets.