It hasn't been a very encouraging start to the new year for Rivian (RIVN 2.58%) stock. Before this week began, shares of the electric vehicle (EV) manufacturer had dipped by more than 2%. The downward trend in Rivian's stock price is continuing this week as investors wrestle with analysts' bearish outlooks.
According to data provided by S&P Global Market Intelligence, Rivian shares are down 11.2% from the end of last Friday's trading session through today's market close.
Image source: Rivian.
Analysts are turning a cold shoulder to Rivian stock this week
Beginning the week on an inauspicious note, Rivian stock received a downgrade to underperform from peer perform (essentially a neutral outlook) from Wolfe Research on Monday, as well as a bearish price target of $16. According to thefly.com, Wolfe Research based its downgrade and lower price target on the fact that Rivian continues to report losses on an earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, as well as concerns about reduced EV demand at the time of the company's launch of its R2 model.
Based on Rivian's shares closing at $19.22 on Friday, Wolfe Research's price target implies an almost 17% downside.
NASDAQ: RIVN
Key Data Points
Revealing a similarly pessimistic view, UBS downgraded Rivian stock to sell from neutral. Although it raised its price target to $15 from $13, it still implies Rivian stock is bound to slip from its current level.
Has the time passed for parking Rivian stock in your portfolio?
While bearish views on Rivian stock may be disconcerting for potential investors, it's important to recognize that not all analysts are down on the stock right now. On Jan. 8, for example, Piper Sandler hiked its price target to $20 from $14.
While opinions are split about where Rivian stock is headed, there's certainly the potential for Rivian stock to accelerate higher -- not only in 2026 but in the years ahead. It's therefore important for investors to do their due diligence before deciding where to buy Rivian stock.
