Rivian Automotive(NASDAQ: RIVN) stock is slipping in Tuesday's trading. The electric vehicle (EV) company's share price was down 4.6% as of 2:30 p.m. ET.
D.A. Davidson published a note today lowering its sales forecast for Rivian, according to reporting from the blog EV. On the other hand, D.A. Davidson maintained its rating and price target for Rivian stock.
Rivian stock falls after a sales target cut from an investment firm
D.A. Davidson's analysts lowered their sales target for Rivian's current fiscal year to $4.73 billion, down from their previous target for sales of $5 billion. The analysts cited potential production shortfalls and supply chain issues. Meanwhile, the investment firm reiterated a neutral rating on the stock and a $13-per-share one-year price target.
To some extent, a potential revenue shortfall was already foreshadowed by Rivian's update on third-quarter vehicle production and deliveries. While the stock is falling on the heels of the analyst coverage, the firm's one-year price target still suggests potential upside of roughly 25% as of this writing.
What's next for Rivian?
Rivian is scheduled to publish its third-quarter results after the market closes on Nov. 7. While investors are still waiting to see how sales and earnings figures for the period come in, the EV specialist has already provided updates on vehicle production and deliveries in the quarter. The business produced 13,157 vehicles and delivered 10,018 vehicles in Q3. It produced 16,304 vehicles and delivered 15,564 vehicles in the prior-year quarter.
With its Q3 update, Rivian stated that it was facing production headwinds due to the shortage of a component used in its R1 and RCV vehicles. In response, the company lowered its full-year production guidance to between 47,000 vehicles and 49,000 vehicles. Previously, the EV player had guided for the production of 57,000 vehicles.
Despite deliveries coming in significantly below production in Q3, the company's deliveries forecast was more encouraging and seems to reflect solid demand. The company is targeting deliveries between 50,500 and 52,000 for the year -- suggesting low-single-digit growth compared to last year's performance. If the supply chain issue can be quickly resolved, Rivian may be able to return to stronger growth next year -- but investors should keep in mind that macroeconomic trends will continue to have a significant impact on the EV space and overall automotive industry.
Should you invest $1,000 in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $861,121!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of October 28, 2024
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
