Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuInvestors should scoop up shares of Rivian Automotive after a recent sell-off, according to UBS. The bank upgraded the electric vehicle stock to buy from neutral. It has a $17 price target on shares, implying 40% upside from Friday’s close. “We see the recent selloff … as a buying opportunity ahead of an inflection in R2 [vehicle] ramp and gross margins,” analyst Joseph Spak said Monday in a note to clients. “Initial R2 demand looks solid which bodes well for when more trim levels come out…As R2 ramps, RIVN should see a positive inflection in auto [gross margins].” Shares of Rivian have plunged about 20% over the past three months as a sudden slowdown in the electric vehicle market has threatened the company’s growth. Global EV demand fell 2% in September amid strong pullbacks in North America and China, Reuters reported in October . RIVN 3M mountain Shares are down about 20% over the past three months. However, UBS expects Rivian to end this year with positive auto gross margins. Spak also noted that the company’s software and services vertical, which has particularly high margins, is “progressing nicely” and could help fund more growth. UBS’ call falls in line with consensus on the Street. Of the 28 analysts covering Rivian Automotive, 16 have a buy or strong buy on the stock, while seven have a hold on it, LSEG data shows. UBS isn’t the only Wall Street shop getting more bullish on Rivian. Last week, Jefferies also upgraded the EV maker to buy from hold.Read More